Indian shares look set to open higher on Thursday as signs of a weakening U.S. labor market and an overnight plunge in oil prices helped ease concerns around inflation and interest-rate hikes.
Crude oil prices were seeing modest gains in Asian trading after declining more than $5 a barrel overnight on demand destruction worries.
Nonetheless, the upside may remain limited and profit taking at higher levels is not ruled out ahead of the more-closely watched U.S nonfarm payrolls report, due on Friday.
Investors also seek direction from domestic corporate earnings and the RBI’s MPC decision on interest rates due Friday.
Shares of aviation, real estate, paint manufacturing and state-run oil marketing companies may rise today on falling oil prices while oil explorers such as ONGC and Oil India may suffer heavy losses.
Benchmark indexes Sensex and Nifty dropped around half a percent each on Wednesday, tracking weak global markets. The rupee ended down 3 paise at 83.24 against the dollar.
Asian markets were seeing modest gains this morning and the dollar extended losses for a second day running while gold edged up slightly.
U.S. stocks rebounded from four-month lows overnight and bond yields pulled back from 16-year highs after data showed private-sector employers added 89,000 jobs in September, the fewest since January 2021 – helping calm some fears over high interest rates.
A separate report revealed activity in the U.S. services sector slowed in September.
The Dow added 0.4 percent to snap a three-day losing streak, while the tech-heavy Nasdaq Composite rallied 1.4 percent and the S&P 500 climbed 0.8 percent.
European stocks ended a choppy session mixed on Wednesday as investors assessed a deluge of regional data.
The pan-European STOXX 600 slipped 0.1 percent. The German DAX finished marginally higher, while France’s CAC 40 ended flat with a negative bias and the U.K.’s FTSE 100 dropped 0.8 percent.
Market Analysis
Sensex, Nifty Seen Opening Up As Global Bond Yields Dip
2023-10-05 02:38:01
