The Indian stock market indices, Sensex and Nifty 50, are expected to open with a positive bias on Friday, following a rally in global markets, as Treasury yields eased. Market sentiment improved after comments from US Federal Reserve Governor Christopher Waller decreased bets of an interest rate hike.
The trends on Gift Nifty also signal a higher start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 24,044 level, a premium of nearly 44 points from the Nifty futures' previous close.
“Given the prevailing combination of elevated crude prices, geopolitical uncertainty and weak market momentum, we recommend maintaining a cautious, stock-specific approach with a strong focus on 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 mostly higher on Friday, following overnight rally on Wall Street, as Treasury yields eased. Japan's Nikkei 225 gained 0.65%, while the Topix index fell 0.28%. South Korea's Kospi rallied 1.23%, while Kosdaq surged 1.18%. Hong Kong's Hang Seng index indicated a higher opening.
Wall Street
US stock market ended higher on Thursday, led by a rally in megacap stocks, and as interest rate hike bets ebbed after the US Federal Reserve Governor Christopher Waller said he would support holding the Fed funds target rate steady if data shows inflationary pressures are abating.
The Dow Jones Industrial Average gained 624.16 points, or 1.18%, to 53,686.11, while the S&P 500 rallied 81.11 points, or 1.06%, to 7,747.71. The Nasdaq Composite closed 366.23 points, or 1.40%, higher at 26,584.06.
ALSO READ: Stock Market Today: All You Need To Know Going Into Trade On Sept 4
SEBI On CAS
SEBI will review how settlement prices for derivative contracts are determined after the introduction of the Closing Auction Session (CAS). The regulator may propose changes to the methodology for determining settlement prices of derivative contracts on expiry and plans to issue a consultation paper in about a week, following feedback from market participants during its first month of operation.
US Tech Stocks Rally
US tech stocks rallied, with the benchmark Nasdaq surging over 1%. Nvidia stock price gained 1.80%, Microsoft shares gained 2.68%, Apple stock price rose 1%, Amazon share price rallied 1.54%, Meta Platforms shares jumped 3.01%, and Alphabet share price surged 1.59%.
Snowflake shares jumped 16.6%, while ServiceNow, Salesforce and Adobe shares gained between 2.1% and 6.5%.
Gold Rate Today
Gold prices steadied after rising more than 2% in the previous session, as a Federal Reserve official's comments on inflation helped ease interest rate hike bets. Spot gold price rose 0.1% to $4,478.17 an ounce, while silver price gained 0.1% to $66.90 an ounce.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
