- Indian stock market likely to open higher following global market gains and Wall Street rally
- GIFT Nifty trading at 24,091, indicating positive start for Nifty 50 and Sensex
- US-Iran conflict escalates with major exchanges of fire and US control claims on Hormuz
The Indian stock market is expected to open higher on Thursday, following gains in global markets, with overnight rally on Wall Street. However, cautiousness may prevail over the escalating US-Iran War and rising crude oil prices.
The trends on Gift Nifty also signal a positive start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 24,091 level, a premium of nearly 91 points from the Nifty futures' previous close.
“Given the heightened volatility and global uncertainty, we reiterate our advice to maintain a cautious stance, keep position sizes light and focus on disciplined risk management,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are five key factors to watch out for ahead of the opening of the Indian stock market today.
Asian Markets
Asian stock market traded mixed on Thursday. Japan's Nikkei 225 fell 0.21%, while the Topix gained 0.67%. South Korea's Kospi rallied 1.07%, while the Kosdaq declined 0.36%. Hong Kong's Hang Seng index futures indicated a slightly higher opening.
Wall Street
US stock market ended higher on Wednesday, as investors opted value buying after three sessions of losses.
The Dow Jones Industrial Average gained 295.01 points, or 0.56%, to 53,061.89, while the S&P 500 rose 35.16 points, or 0.46%, to 7,666.63. The Nasdaq Composite closed 118.05 points, or 0.45%, higher at 26,217.83.
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US-Iran War
The conflict in the Middle East escalated after the United States and Iran exchanged their biggest barrage since July. While the US struck Iran's southern coast, Tehran fired at US bases across the region. President Donald Trump has also threatened further strikes and also claimed that the US now has “almost total control” of the Strait of Hormuz.
FCNR(B) Deposits
The FCNR(B) deposits brought in $127.2 billion, while overseas foreign-currency borrowings contributed $5.26 billion and external commercial borrowings $3.89 billion, according to provisional data from the Reserve Bank of India (RBI). The central bank said the total inflows stood at $136.4 billion by August 31.
Gold Rate Today
Gold prices held gains after rebounding 1% the day before to snap a three-day decline. Spot gold rate rose 0.1% to $4,386.94 an ounce, while silver prices gained 0.1% to $65.38 an ounce.
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