The Indian stock market is expected to open positively, mirroring a strong rally in global markets. Several factors have contributed to this outlook, including developments in the GIFT Nifty, positive cues from Wall Street, and fluctuations in gold prices.
1. GIFT Nifty Signals Positive Start:
The GIFT Nifty is trading near the 25,715 level, which is approximately a 100-point premium compared to the previous Nifty futures close. This suggests a positive opening for the Indian stock market indices.
2. Global Market Rally:
Asian markets are mostly advancing, and US equities surged overnight. The S&P 500 and Nasdaq are approaching their record highs. The Dow Jones Industrial Average jumped 404.41 points (0.94%) to close at 43,386.84. The S&P 500 increased by 48.86 points (0.80%), ending at 6,141.02. The Nasdaq Composite was up by 194.36 points (0.97%), finishing at 20,167.91.
3. Domestic Market Performance:
On Thursday, the Indian stock market extended its winning streak for the third consecutive session. The Nifty 50 climbed past the 25,500 mark, reaching a nine-month high. The Sensex gained 1,000.36 points (1.21%) to close at 83,755.87, while the Nifty 50 moved up by 304.25 points (1.21%) to settle at 25,549.
4. US Economic Indicators and Rate Cut Expectations:
The US stock market closed higher on Thursday, influenced by economic indicators that seemed to support a potential rate cut by the US Federal Reserve.
5. Analyst Outlook:
According to Ajit Mishra from Religare Broking Ltd., the markets have finally resumed their uptrend after consolidating for over five weeks. Mishra anticipates the Nifty 50 will gradually move towards its record high, potentially pausing around the 25,700 – 25,800 zone. Rate-sensitive sectors such as banking, financials, auto, and realty are favored, with a selective approach recommended for other segments.
6. Asian Market Cues:
Asian markets traded mostly higher on Friday, following the overnight rally on Wall Street. Japan's Nikkei 225 rose 1.07%, and the Topix index gained 1.05%. South Korea's Kospi index and Kosdaq were flat, while Hong Kong's Hang Seng index futures indicated a slightly higher opening.
7. Gold Price Fluctuations:
Spot gold was trading down by 0.4% at $3,314.27/oz. US gold futures slumped by 0.6% at $3,327. Gold prices were also noted to be set for weekly gains amid weak US data and a softer dollar. Spot gold rose 0.3% to $3,361.36 an ounce, while U.S. gold futures also gained 0.3% to $3,384.40.
8. Crude Oil Prices:
Crude oil prices moved higher but remained on track for a weekly decline as the Israel-Iran ceasefire held and concerns over Middle East supply disruptions eased. Brent crude gained by 0.5% to $68.07/barrel, and US West Texas Intermediate (WTI) crude rose by 0.51% to $65.57/barrel.
9. FII and DII Activity:
Institutional flows have been positive, with foreign institutional investors (FIIs) and domestic institutional investors (DIIs) continuing their buying streak.
10. Global Events:
The Indian benchmark indices, Sensex and Nifty 50, are expected to open higher, tracking a strong overnight global market rally as the Israel-Iran ceasefire held firm.
