Indian Stock Market: Key Developments and Global Market Cues for Friday
Indian stock market indices, the Sensex and Nifty 50, are expected to open higher on Friday, following mixed signals from global markets. The domestic equity benchmarks are anticipated to see a positive start as investors assess a range of economic indicators and geopolitical developments.
Asian Markets Show Mixed Performance
Asian markets generally traded in a positive direction on Friday, with investors focusing on regional economic data. Japan’s Nikkei 225 rose 0.48%, while the Topix increased 0.5%. South Korea’s Kospi gained 0.36%, whereas the small-cap Kosdaq declined 0.34%. Hong Kong’s Hang Seng index futures indicated a lower opening, signaling mixed sentiment in the region.
Gift Nifty Indicates Positive Outlook
Gift Nifty was trading around 24,690, a premium of nearly 38 points above the Nifty futures’ previous close. This suggests a mildly positive outlook for the Indian stock market indices, with traders anticipating a potential upward movement.
US Market Ends Flat Amid Tax Bill Passage
The US stock market ended the session relatively flat on Thursday after the House of Representatives passed President Donald Trump’s tax and spending bill by a single vote. The mixed outcome raised concerns about the country’s debt load and the overall economic outlook.
US Treasury Yields Reach 19-Month High
US Treasury yields reached their highest level in 19 months before easing on Thursday, driven by ongoing concerns over the US fiscal outlook. The 30-year bond yield was down 3.7 basis points at 5.0521% late Thursday, while the 10-year note yield fell to 4.551%. During the session, the 10-year yield had reached 4.629%, the highest since February 12.
India GDP Growth Forecast Upgraded
Morgan Stanley has modestly upgraded its forecast for India’s economic growth, projecting a 6.2% year-on-year increase for FY 2026, up from 6.1% and 6.5% for FY 2027. The revision reflects the de-escalation of US-China trade tensions, which is expected to improve external demand.
US Jobless Claims Fall Short of Forecasts
The number of Americans filing for unemployment benefits dropped last week, with initial claims falling 2,000 to a seasonally adjusted 227,000 for the week ended May 17. Economists had forecast 230,000 claims, indicating a slight improvement in the labor market.
Japan Inflation Accelerates to 3.5%
Japan’s core inflation accelerated to its fastest annual pace in over two years in April, with the core consumer price index rising 3.5% from a year earlier. This exceeded market forecasts for a 3.4% gain and marked an increase from March’s 3.2% rise.
Sensex Rejig: Key Changes Effective June 23
Tata Group-owned Trent and state-owned Bharat Electronics will replace Nestle India and IndusInd Bank in the 30-share Sensex. The changes will take effect from the beginning of trading on June 23, as announced by the BSE.
Gold Prices Rise Amid Softer Dollar
Gold prices were on track for its best weekly gain in over a month, driven by a weaker dollar and increased safe-haven demand. Spot gold prices rose 0.2% to $3,299.79 an ounce, with bullion up about 3% this week and on track for its best weekly performance since early April.
Crude Oil Prices Fall Amid OPEC Production
Crude oil prices declined, marking their first weekly drop in three, due to OPEC’s increased production. Brent crude fell 0.42% to $64.17 a barrel, while US WTI crude futures dropped 0.52% to $60.88.
Analysts suggest that global market movements, including rising bond yields and geopolitical uncertainties, could influence the Indian stock market in the coming days. Investors are advised to monitor key economic indicators and market sentiment before making investment decisions.