The Indian stock market is expected to open higher on Friday, as investors may opt for short covering after previous session's losses. 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 22,830 level, a premium of nearly 119 points from the Nifty futures' previous close.
However, surging oil prices and heightened geopolitical tensions continue to weigh on investor sentiment.
In the previous session, the Indian stock market ended lower, with the benchmark Nifty 50 slipping below 22,700 level.
“Given elevated crude prices, geopolitical uncertainty and persistent weakness in broader-market participation, investors should maintain a cautious stance, focus on selective stock-specific opportunities and follow disciplined risk management,” 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 lower, following overnight losses on Wall Street,
Asia-Pacific markets were set to mostly fall on Friday, tracking losses on Wall Street, amid concerns over AI spending and rising crude oil prices. Japan's Nikkei 225 declined 1.62% and the Topix dropped 1.53%. South Korea's Kospi plunged 3.00%, while the Kosdaq shed 2.44%. Hong Kong's Hang Seng index futures indicated a higher opening.
Wall Street
US stock market ended mostly lower on Thursday, with the Nasdaq slipping over 2%, posting its steepest daily drop since early June.
The Dow Jones Industrial Average rose 11.89 points, or 0.02%, to 52,867.98, while the S&P 500 declined 93.74 points, or 1.21%, to 7,663.43. The Nasdaq Composite closed 694.00 points, or 2.60%, to 26,008.86.
ALSO READ: Stock Market Today: All You Need To Know Before Going Into Trade On Oct 23
Tech Stocks Selloff
US technology stocks witness strong selloff on fresh fears about the AI spending race. The Philadelphia SE Semiconductor Index sank 6.7%, its biggest daily percentage drop since June 23.
Nvidia stock price dropped 4.40%, AMD shares plunged 8.10%, Intel share price tanked 8.04%, Micron Technology shares slipped 6.26%, Broadcom stock price declined 4.31%, Microsoft stock fell 2.23% and Meta Platforms shares cracked 6.98%.
Crude Oil Prices
Crude oil prices eased but were headed for a third weekly gain on risk of supply disruptions from the Middle East as the war escalated across the region. Brent crude futures fell 0.38% to $112.74 a barrel, while US West Texas Intermediate crude was at $99.15 a barrel, down 0.32%.
Gold Rate Today
Gold prices steadied near its lowest close in more than three months. Spot gold price was little changed at $4,024.48 an ounce, after falling almost 3% in the previous session to its lowest since July 20. Silver price fell 0.1% to $54.49.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.