- Indian stock market indices, Sensex and Nifty 50, are projected to open higher on Friday, following a positive momentum in global markets.
- Asian markets are trading higher, while the US stock market closed in the green overnight due to renewed hopes of interest rate cuts by the US Federal Reserve.
- On Thursday, the Indian stock market indices witnessed a fifth consecutive day of sell-off, with the Nifty 50 slipping below the 22,000 level.
Indian stock market indices are expected to open higher on Friday, tracking positive momentum in global markets. This follows a fifth consecutive day of sell-off on Thursday.
Asian Markets
Asian markets traded higher on Friday, tracking overnight gains on Wall Street amid renewed rate cut hopes. Japan’s Nikkei 225 rallied 1.52%, while the Topix gained 1.22%. South Korea’s Kospi surged 1% and the Kosdaq rose 0.97%. Hong Kong’s Hang Seng index futures indicated a stronger opening.
Gift Nifty Today
Gift Nifty was trading around 22,155 level, a premium of nearly 80 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
The US stock market ended higher on Thursday with the Dow Jones Industrial Average extending gains for the seventh straight daily, after weekly jobless claims data raised hopes for interest-rate cuts by the US Federal Reserve. The Dow Jones Industrial Average rallied 331.37 points, or 0.85%, to 39,387.76, while the S&P 500 gained 26.41 points, or 0.51%, to 5,214.08 points. The Nasdaq Composite ended 43.51 points, or 0.27%, higher at 16,346.27.
Bank of England Policy
The Bank of England’s Monetary Policy Committee voted 7-2 to keep rates at a 16-year high of 5.25% after Deputy Governor Dave Ramsden joined Swati Dhingra in voting for a cut to 5%. Economists polled by Reuters had mostly expected another 8-1 split to keep rates on hold.
US Jobless Claims
The number of Americans filing new claims for unemployment benefits increased more than expected last week. Initial claims for state unemployment benefits increased 22,000 to a seasonally adjusted 231,000 for the week ended May 4, the Labor Department said. Economists polled by Reuters had forecast 215,000 claims in the latest week.
Oil Prices
Crude oil prices traded higher on the signs of an improving Chinese economy. Brent futures rose 0.38% to $84.20 a barrel, while US West Texas Intermediate crude grew 0.47% to $79.63.
Dollar
The dollar weakened against most currencies after economic data showed more signs of softening in the US labor market, Reuters reported. The dollar index, which measures the greenback against a basket of currencies, fell 0.22% at 105.28.
Conclusion
In conclusion, the Indian stock market is expected to open higher on Friday, tracking positive momentum in global markets. This follows a fifth consecutive day of sell-off on Thursday. The global market cues indicate a positive outlook for the Indian stock market.
