The Indian stock market is expected to open lower on Friday, as investors may remain cautious after a surge in domestic retail inflation which increased expectations of tighter monetary policy and interest rate hikes.
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 25,252 level, a discount of nearly 56 points from the Nifty futures' previous close.
In the previous session, the benchmark indices ended with minor gains, with the Nifty 50 closing around 25,300 level.
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“After the recent sharp rally, some consolidation and sectoral rotation appear healthy. We recommend maintaining a positive but selective bias, focusing on quality stocks across sectors and aligning exposure with emerging sectoral rotation,” said Ajit Mishra, SVP – research, Religare Broking.
Here are five key factors that may drive the Indian stock market today:
Asian Markets
Asian markets traded mostly higher on Friday. Japan's Nikkei 225 rallied 1.50% and the Topix gained 0.65%. South Korea's Kospi jumped 2.34%, while Kosdaq surged 3.50%. Hong Kong's Hang Seng index futures indicated a lower opening.
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Wall Street
US stock market ended lower on Thursday amid a slump in Nvidia shares.
The Dow Jones Industrial Average declined 189.40 points, or 0.36%, to 52,297.09, while the S&P 500 fell 26.98 points, or 0.35%, to 7,592.40. The Nasdaq Composite closed 100.10 points, or 0.39%, lower at 25,366.09.
India Inflation
India's retail inflation surged to 6.09% in October, breaching the Reserve Bank of India's upper tolerance limit for the first time in two years, and coming in slightly above market estimates of 6%. The consumer price index (CPI) based retail inflation rose to 5.54% in September.
Crude Oil Prices
Crude oil prices held steady after a rally as US President Donald Trump said that the US could forgo a deal with Iran. Brent oil prices fell 0.14% to $95.69 a barrel, after adding 3.3% in the previous session. West Texas Intermediate (WTI) price declined 0.25% to $88.52 a barrel.
Gold Rate Today
Gold prices traded near a one-year low on increased bets of Federal Reserve rate hike. Spot gold price rose 0.1% to $3,881.02 an ounce, after falling nearly 3% and briefly hitting a 13-month low in the previous session. Silver price rose 0.2% to $50.11.
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