Indian stock market is expected to extended losses on Thursday, following weak global sentiment, as elevated crude oil prices and rising bond yields renewed inflation concerns and the outlook for higher interest rates.
The trends on Gift Nifty also signal a negative start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 23,468 level, a discount of nearly 84 points from the Nifty futures' previous close.
“Going ahead, volatility is likely to remain elevated until there is clarity on the Middle East situation and crude prices. Investors should remain selective, focus on quality large-caps and avoid aggressive positioning until sentiment stabilises,” said Vikram Kasat - Chief Business Officer – Advisory and Dealing at PL Capital.
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Here are five key things to watch ahead of the opening of the Indian stock market today.
Asian Markets
Asian markets traded lower on Thursday, following overnight losses on Wall Street, as elevated crude oil prices dent sentiment. Japan's Nikkei 225 declined 1.06%, and the Topix fell 0.46%. South Korea's Kospi dropped 1.43%, while the Kosdaq shed 1.90%. Hong Kong's Hang Seng index futures indicated a lower opening.
Wall Street
US stock market ended lower on Wednesday as crude oil prices jumped above $100 a barrel and Treasury yields rose.
The Dow Jones Industrial Average declined 0.77% to 52,381.02, while the S&P 500 fell 0.48% to end the session at 7,636.46. The Nasdaq closed 0.64% lower at 26,253.34.
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US Treasury Yields
US Treasury yields rose, with the benchmark 10-year Treasury yields hitting their highest levels since 2023 after the announcement of a higher Treasury buyback of longer-dated bonds. The US 10-year treasury yield rose 3.06 bps to 4.835% after earlier reaching 4.8568%, the highest level since November 2023. The 30-year bond yield rose 2.06 bps to 5.2846%, and the 2-year note yield rose 2.52 bps to 4.423%.
Crude Oil Prices
Crude oil prices jumped after escalation US-Iran war deepened supply concerns. Brent futures were flat at $ 101.19 a barrel, WTI crude futures rose 0.98% to $96.99 a barrel.
Gold Rate Today
Gold prices steadied, after adding 1% in the previous session, ahead of the US inflation data. Spot gold price was steady at $4,400.32 an ounce, while silver price was little changed at $67.29 an ounce, after adding 2.4% in the previous session.
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