The Indian stock market indices, Sensex and Nifty 50, may take a breather from persistent losses and open flat-to-positive tracking gains in global markets.
The Asian markets traded higher while the US stock market ended in the green overnight after dollar eased and treasury yields retreated from multi-year higher highs.
However, sentiment still remains weak amid sustained foreign capital outflow, concerns over inflation and a further hike in interest rates and global growth worries.
On Wednesday, the domestic benchmark indices extended losses from a second consecutive session with the Nifty 50 closing below 19,500 level.
investors will now focus on the Reserve Bank of India (RBI) monetary policy decision to be announced on Friday and the upcoming corporate earnings season.
“We expect weakness to persist in the market in the coming weeks till the headwinds recede. The Q2 earnings season will start next week and is expected to maintain the growth momentum of previous quarters. Even the pre-quarterly updates released so far indicate healthy traction,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Market direction going ahead will depend upon the combination of global/local macros and earnings delivery along with management outlook, Khemka added.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Thursday following overnight gains on Wall Street as the US dollar and Treasury yields retreated following much weaker-than-expected jobs data.
Japan’s Nikkei 225 gained 0.53% and the Topix rose 0.67%. South Korea’s Kospi added 0.78%, while the Kosdaq rallied 1.41%.
Hong Kong’s Hang Seng index futures were at 17,230 compared to the HSI’s close of 17,195.84. China’s markets are closed for the weeklong holiday.
Australia’s S&P/ASX 200 was up 0.19%.
Meanwhile, Gift Nifty was trading around 19,491 as against Nifty futures’ previous close of 19,478, indicating a positive start for the Indian benchmark indices.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — October 5
Wall Street
The US stock market indices ended higher on Wednesday as traders trimmed bets on higher interest rates, while Treasury yields eased off of 16-year highs.
The Dow Jones Industrial Average rose 127.17 points, or 0.39%, to 33,129.55, and the S&P 500 gained 34.3 points, or 0.81%, to 4,263.75. The Nasdaq Composite ended 176.54 points, or 1.35%, higher at 13,236.01.
The yield on 10-year treasury notes touched 4.884%, its highest since August 2007, while 30-year treasury yields soared above 5%.
(Exciting news! Mint is now on WhatsApp Channels
US private payrolls
US private payrolls increased far less than expected in September, but that likely exaggerates the pace of slowdown in the labor market, Reuters reported.
Private payrolls rose by 89,000 jobs last month, the ADP National Employment Report showed on Wednesday. Economists polled by Reuters had forecast private employment would rise by 153,000.
Dollar, Treasury yields retreat
The US dollar fell on Wednesday, tracking the pullback in US Treasury yields, after a mixed set of data diminished the odds of another interest rate hike by the US Federal Reserve before the end of the year.
The dollar index, which tracks the greenback against six peers, was down at 106.78. The index, however, remained within striking distance of a nearly 11-month high of 107.34 reached in the previous session.
Ten-year Treasury yields slipped below 4.8%, after jumping 30 basis points this week amid reduced expectations for a rate hike this year.
Crude oil prices at one-month low
Crude oil prices declined more than $5 on Wednesday as fuel demand destruction and a bleaker macroeconomic picture weighed on sentiment.
Brent crude oil futures settled down 5.11, or 5.6%, to $85.81 a barrel while US West Texas Intermediate crude (WTI) fell $5.01, or 5.6%, to $84.22.
Crude oil prices have fallen by about $10 since last week’s settlement.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
