The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Friday, following a sell-off in global markets as prolonged US-Iran war continues to keep investors away from risky assets.
Asian markets plunged, while the US stock market ended sharply lower overnight, as crude oil prices jumped near $100 per barrel.
On Thursday, the Indian stock market crashed again, weighed down by concerns over surging crude oil prices amid the US-Iran war.
The Sensex tanked 829.29 points, or 1.08%, to close at 76,034.42, while the Nifty 50 settled 227.70 points, or 0.95%, lower at 23,639.15.
“Indian equities are likely to remain volatile, influenced by developments in the West Asia conflict, sharp movements in crude oil prices and continued foreign fund outflows,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Friday as surging oil prices continue to stoke inflation fears. Japan’s Nikkei 225 declined 2% while Topix fell 1.4%. South Korea’s Kospi slumped 3% and the Kosdaq plunged 2%. Hong Kong’s Hang Seng index indicated a lower opening.
Japanese government bonds (JGBs) yields rose amid higher crude oil prices and a weaker yen as escalating US-Iran war stoked inflation fears. The benchmark 10-year JGB yield rose 2.5 basis points to 2.205%, while the five-year yield rose 2 bps to 1.645%.
Gift Nifty Today
Gift Nifty was trading around 23,555 level, a discount of nearly 173 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended lower on Thursday, after Iranian strikes on two oil tankers sent crude prices surging toward $100 per barrel, further exacerbating inflation fears.
The Dow Jones Industrial Average declined 739.42 points, or 1.56%, to 46,677.85, while the S&P 500 plunged 103.22 points, or 1.52%, to 6,672.58. The Nasdaq Composite closed 404.15 points, or 1.78%, lower at 22,311.98.
Nvidia stock price fell 1.53%, AMD share price tanked 3.46%, Apple shares fell 1.94%, Intel shares slipped 5.69%, Amazon share price dropped 1.47% while Tesla stock price slid 3.14%.
Bumble stock price jumped 34.2%, Dollar General shares plunged 6.1%, while LyondellBasell share price jumped 10.3%. Adobe shares ended 1.43% lower, but the stock slumped 7.80% in extended trading.
US-Iran War
The leaders of Iran, Israel and the United States all voiced defiance and vowed to fight on as the Middle East war approached the two-week mark on Friday, Reuters reported. Iran’s new Supreme Leader Mojtaba Khamenei issued his first defiant comments, vowing to fight on and keep the Strait of Hormuz shut, and calling on neighboring countries to close US bases on their territory or risk Iran targeting them.
India Inflation
India’s retail inflation rose to 3.21% in February, hit by the rise in prices of food and beverages, clothing and housing and utility services. The latest Consumer Price Index (CPI) data can’t be compared with the year-ago period due to the reset of the index basket in January. Retail inflation was recorded at 2.75% in January, marking the debut for the new series with 2024 as the base year.
Russian Oil
The US issued a 30-day license for countries to buy Russian oil and petroleum products currently stranded at sea in what Treasury Secretary Scott Bessent said was a step to stabilize global energy markets roiled by the Iran war, Reuters reported.
Adobe Q1 Earnings
Adobe reported revenue of $6.40 billion in the first-quarter ending February 27, beating estimates of $6.28 billion. On an adjusted basis, the company earned $6.06 per share, compared with estimates of $5.87 per share.
The company forecast second-quarter revenue between $6.43 billion and $6.48 billion, compared with estimates of $6.43 billion, according to data compiled by LSEG. Profit, excluding some items, will be $5.80 to $5.85 a share, compared with an average projection of $5.70.
Adobe also announced that its longtime CEO Shantanu Narayen will resign from his role once a successor is appointed.
Dollar
The dollar held gains on Friday and was set for its second weekly gain since the beginning of the war in Iran. The dollar index, which measures the greenback against a basket of currencies, reached the highest level since November. The index fell 0.04% to 99.63, poised for a 0.8% gain this week. The euro was up 0.13% at $1.1525, and Sterling was up 0.11% to $1.3356.
The yen strengthened 0.17% to 159.08 per dollar.
Gold Rate Today
Gold prices rose amid a weaker dollar and declining US Treasury yields. Spot gold price gained 0.7% to $5,112.34 per ounce, while US gold futures for April delivery edged 0.2% lower to $5,115.80. Spot silver price was up 1.5% at $85.03 per ounce.
Crude Oil Prices
Crude oil prices eased after jumping over 9% in the previous session. Brent crude oil price fell 0.73% to $99.73 a barrel, while the US West Texas Intermediate (WTI) crude futures fell 0.86% to $94.91.
(With inputs from Reuters)
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