Gift Nifty signals a gap-down start for the Indian stock market.
Photo Source: Envato
The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday, following weakness in global markets, as crude oil prices remain elevated and US Treasury yields surged.
The trends on Gift Nifty also signal a gap-down start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 23,266 level, a discount of nearly 184 points from the Nifty futures’ previous close.
In the previous session, market extended recovery, with the benchmarks gaining around half a percent each.
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“The performance of the banking sector is likely to play a critical role in determining the sustainability of the rebound. Meanwhile, a selective and hedged approach remains preferable amid persistent FII outflows and ongoing geopolitical uncertainty,” said Ajit Mishra, SVP – research, Religare Broking.
Here are five key factors that may drive the Indian stock market today:
Asian Markets
Asian stock market traded mixed on Thursday, following overnight losses on Wall Street. Japan’s Nikkei 225 rallied 1.80%, while the Topix rose 0.20%. Hong Kong’s Hang Seng index futures indicated a lower opening. South Korea’s markets are closed for a holiday.
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Wall Street
US stock market ended lower on Wednesday, weighed down by a spike in Treasury yields and crude oil prices.
The Dow Jones Industrial Average declined 0.68% to 51,511.59, while the S&P 500 dropped 0.75% to end the session at 7,706.05. The Nasdaq closed 1.13% lower at 26,936.04.
US Treasury Yields
US Treasury yields rose overnight, sparking a sell-off in the market. The benchmark 10-year Treasury yield surged to 5.135%, its highest level since July 2007. The yield on the 2-year note rose to 4.947%, its highest since May 2024.
US-Iran War
The US-Iran war in the Middle East entered its 208th day on Thursday, with both the countries remaining divided over how to bring an end to the war. Iran’s president told the UN General Assembly that Tehran would never surrender to US pressure.
Crude Oil Prices
Crude oil prices fell after jumping almost 4% in the previous session, as Iran said it remained open to diplomacy to end the US-Iran war, while the US said that major volumes of crude are getting through the Strait of Hormuz. Brent futures declined 1.08% to $101.97 a barrel, WTI crude futures fell 0.81% to $91.41 a barrel.
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