Nifty buy sell signals-Indian stock market: 5 key things that changed for market overnight- Gift Nifty, Nikkei Index to stronger Yen
Indian stock market: 5 key things that changed for market overnight- Gift Nifty, Nikkei Index to stronger Yen
Indian stock market expected a muted opening on Friday as GIFT Nifty declined amid weak global cues. Asian equities fell with Japan's yen appreciating due to rising inflation. Sensex and Nifty 50 had significant losses on Thursday, reflecting cautious investor sentiment amid geopolitical tensions.
Indian stock market: The domestic market benchmark indices are anticipated to have a muted opening on Friday's trade with GIFT Nifty down 5.95 points from Thursday's close on Nifty Futures amid weak global cues.
Asian equities saw a decline on Friday, with the yen appreciating as inflation data from Tokyo came in higher than expected. In contrast, US equity futures exhibited gains, with investors gearing up for the resumption of cash trading after the Thanksgiving holiday, as reported by Bloomberg. Shares in Australia, Japan, and South Korea all experienced drops.
Sensex and Nifty 50, experienced a significant decline on Thursday, giving up earlier gains and falling by nearly 1.50%. This downturn was largely driven by heavy selling in key stocks such as Infosys, Reliance Industries (RIL), and HDFC Bank, coinciding with a mixed performance in global markets.
Analysts pointed out that the market was further pressured by substantial losses in sectors like IT, automotive, and consumer durables, which were amplified by rising geopolitical tensions.
Sensex closed down 1,190.34 points, or 1.48%, settling at 79,043.74. Throughout the day, it saw a drop as steep as 1,315.16 points, reaching a low of 78,918.92. This selling pressure reflects the cautious sentiment among investors amid current global uncertainties. The Nifty 50 fell 360.75 points or 1.49% to 23,914.15.
Here are key global market cues for Nifty 50 and Sensex today:
GIFT Nifty
The domestic market benchmark indices are expected to open on a subdued note in Friday's trade, as indicated by GIFT Nifty, which is down 5.95 points from Thursday’s closing on Nifty Futures. This decline comes amid lackluster global cues, suggesting a cautious sentiment among investors. Traders are likely to keep an eye on international market trends and any relevant economic data that could influence local sentiments throughout the day.
Asian Markets
Asian shares experienced a slight decline on Friday as the yen aimed for its best weekly performance in four months, spurred by robust local inflation data that suggested a potential rate hike from the Bank of Japan.
With US markets and Treasuries closed for the Thanksgiving holiday, there was limited direction for Asian traders. The MSCI index, which tracks shares across the Asia-Pacific region outside of Japan, dropped by 0.3% and is down 0.5% for the week. Meanwhile, Japan's Nikkei index fell by 0.7% as the yen strengthened following the release of Tokyo's inflation data.
The yen experienced a significant surge, climbing by up to 1% to reach a six-week high of 150 per dollar on Friday. This rise was fueled by unexpectedly strong inflation figures in Tokyo, which bolstered expectations for a potential interest rate hike by the Bank of Japan next month.
Meanwhile, the dollar weakened against many major currencies, particularly noticeable in the trading environment influenced by the U.S. Thanksgiving holiday. The British pound also rose, reaching levels not seen since November 20. For the week, the dollar index is poised for a decline of about 1.5%, while the yen is on track for impressive gains of approximately 3%.
Crude Oil
Oil prices remained steady as traders adjusted their focus on OPEC's production strategies following a postponement of a crucial meeting by four days. West Texas Intermediate was trading under $69 a barrel, while Brent crude saw a closing price above $73. The upcoming online gathering on December 5 will be pivotal for the producer group as they deliberate whether to renew supplies or extend existing cuts into 2025 to prevent oversaturating global markets.
Nikkei Index
Japan's Nikkei share average rebounded on Thursday, erasing earlier losses and trading higher after two consecutive sessions of declines that made stocks more appealing. By the midday break, the Nikkei was up 0.42% at 38,295.13, having dipped as much as 0.87?rlier in the session. The broader Topix index also saw gains, climbing 0.55% to reach 2,679.96. Notably, chip-making equipment maker Tokyo Electron surged by 6.45%, becoming the largest contributor to the Nikkei's gains.
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