- The Indian stock market is poised for a lower opening on Thursday, influenced by weak global market cues.
- Asian markets have shown a downward trend, and US stocks closed in the red, driven by higher Treasury yields and uncertainties regarding potential interest rate cuts by the US Federal Reserve.
- “Though FII selling intensity has reduced, the caution is increasing as we near the big event outcome which is resulting in profit booking,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Indian stock market to open lower amid weak global cues, with heightened volatility expected in coming sessions.
Asian Markets
Asian markets traded lower on Thursday, tracking overnight losses on Wall Street and ahead of key economic data from the region. Japan’s Nikkei 225 plunged over 2%, while the Topix declined 1.4%. South Korea’s Kospi dropped 1%, and the Kosdaq fell 0.6%. Hong Kong’s Hang Seng index futures indicated a weaker opening.
Gift Nifty Today
Gift Nifty was trading around the 22,660 level, a discount of nearly 70 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
The US stock market ended lower on Wednesday, with the Dow Jones falling more than 1% and hitting its lowest level in nearly a month. The S&P 500 fell 39.09 points, or 0.74%, to 5,266.95 while the Nasdaq Composite closed 99.30 points, or 0.58%, lower at 16,920.58. The Dow Jones Industrial Average plunged 411.32 points, or 1.06%, to 38,441.54.
Treasury Yields
The yield on the benchmark 10-year US Treasury note hit four-week highs at 4.6%, extending Tuesday’s gains, after weak debt auctions.
Fed Beige Book Survey
The US economy expanded at a “slight or modest” pace across most regions since early April, and consumers pushed back against higher prices, the Federal Reserve said in its Beige Book survey of regional business contacts.
Oil Prices
Crude oil prices were steady after retreating earlier. West Texas Intermediate traded 0.10% higher at $79.31 a barrel after falling 0.8% in the previous session, while Brent oil traded 0.11% higher at $83.69 a barrel.
Conclusion
The Indian stock market is expected to open lower amid weak global cues, with heightened volatility anticipated in the coming sessions. Investors are advised to remain cautious and avoid aggressive trading. Key factors to watch include global market trends, US Treasury yields, and economic data releases.
