Indian Stock Market: Domestic stock markets are expected to open flat to higher on Friday, taking a breather from three sessions of declines, supported by positive trends in global markets.
Asian markets rose and US stocks rose overnight as tech stocks rose on AI optimism.
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India's benchmark stock index fell further on Thursday, ending choppy trading lower, for the third straight session of declines. In three sessions, the Nifty 50 and Sensex fell by around 3% each.
Domestic benchmark index Nifty 50 falls further to end lower amid selling pressure as US bond yields rise following recent strong US economic data and fears of possible interest rate delays rise The loss expanded for three consecutive trades. cut.
The Sensex fell by 313.90 points or 0.44% to close at 71,186.86 and the Nifty 50 fell by 109.70 points or 0.51% to close at 21,462.25.
Investors will now focus on corporate earnings for the third quarter of 2024, which have been mixed so far.
“Amid an uncertain global environment, we expect the market to consolidate within a range with limited upside. Major companies in the market are scheduled to announce their Q3 results today, which could push the index higher on either side,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services. .
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Here are today's key global market cues for Sensex.
Asian markets rose on Friday following Wall Street's overnight gains supported by tech stocks. Investors also appreciated Japan's December core inflation data, released ahead of the Bank of Japan's monetary policy meeting, which was the lowest since June 2022.
Japan's Nikkei Stock Average rose 1.4% and TOPIX rose 0.98%. South Korea's Kospi rose 1.14% and Kosdaq rose 1.37%. Hong Kong's Hang Seng Index futures opened flat.
The gift Nifty is trading around 21,530 levels as against the previous close of Nifty futures at 21,550, indicating a lackluster start for the Indian stock market index.
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U.S. stock market indexes ended Thursday with gains led by technology stocks, with the S&P 500 index nearing record highs as chip makers rebounded.
The Dow Jones Industrial Average rose 0.54% to $37,468.61, and the S&P 500 rose 0.88% to close at 4,780.94. The Nasdaq rose 1.35% to end at 15,055.65.
Shares of U.S.-listed Taiwan Semiconductor Manufacturing Co. (TSMC) rose nearly 10%, and the tech-heavy Nasdaq 100 index closed at a record high. Semiconductor manufacturers posted their biggest jump in more than a month.
Nvidia stock rose 1.9% to a new all-time high, while Advanced Micro Devices rose 1.6%. Shares of Broadcom, Qualcomm and Marvell Technologies each rose more than 3%.
Apple shares rose 3.3% after Bank of America upgraded the stock to “buy'' and are expected to have room to rise by more than 20% in the future.
US weekly unemployment claims fall
The number of Americans filing new claims for unemployment benefits fell last week to the lowest level since late 2022, Reuters reported. The number of first-time claims for state unemployment benefits fell by 16,000 for the week ending Jan. 13 to a seasonally adjusted 187,000, the lowest level since September 2022, according to the Labor Department. Economists polled by Reuters had predicted 207,000 insurance claims in the past week.
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Dollar rises for 5 consecutive sessions
The dollar index rose for a fifth straight session on Thursday as investors see prospects for a March interest rate cut by the U.S. Federal Reserve weakening after strong labor market data.
The U.S. dollar index, which measures the currency against a basket of six countries, rose 0.14% to 103.47, after hitting 103.69 on Wednesday, its highest since Dec. 13. The stock has been on an upward trend for five consecutive sessions, making it the longest such streak. Since August, according to Reuters.
Fed's Bostic is open to early interest rate cuts
Atlanta Fed President Rafael Bostic will cut U.S. interest rates sooner than expected if there is “compelling” evidence that inflation is falling faster than expected in the coming months, according to Reuters. He said he was ready.
But Bostic added that the overall situation facing the Fed is “cautious.”
Japan's inflation rate is lowest since June 2022
Japan's core inflation rate, which excludes fresh food prices, slowed for the second straight month in December. The core consumer price index (CPI) rose 2.3% year-on-year in December, the slowest pace of increase since June 2022. This followed a 2.5% rise in November.
(Information provided by Reuters)
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