The Indian stock market is expected to see a cautious opening on Thursday, following mixed cues from global markets. Investors are likely to weigh softer US inflation data against elevated Treasury yields, volatile crude oil prices and continued uncertainty surrounding the US-Iran war Middle East.
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 22,607 level, a discount of nearly 100 points from the Nifty futures' previous close.
“With the Nifty 50 index continuing to trade near six-month lows and broader market participation remaining weak, the near-term setup remains cautious, warranting a selective approach and close monitoring of the key support levels,” said Ajit Mishra, SVP – research, Religare Broking.
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Here are five key factors to watch ahead of the opening of the Indian stock market today:
Asian Markets
Asian markets traded mixed amid cautiousness on Thursday. Japan's Nikkei 225 rallied 1.80%, while the Topix fell 0.41%. South Korea's Kospi rose 0.11%, while the Kosdaq Index surged 2.21%. Mainland China and Hong Kong markets were closed for a holiday.
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Wall Street
US stock market ended mixed on Wednesday after softer-than-expected inflation data cooled expectations of US Federal Reserve interest rate hike.
The Dow Jones Industrial Average declined 443.87 points, or 0.86%, to 50,906.05, while the S&P 500 fell 19.30 points, or 0.25%, to 7,651.54. The Nasdaq Composite closed 63.52 points, or 0.24%, higher at 26,861.06.
US Inflation
US inflation increased less than expected in August. The Personal Consumption Expenditures Price Index rose 0.3% last month after a downwardly revised 0.1% gain in July. In the 12 months through August, PCE inflation advanced 3.4% after increasing by a downwardly revised 3.4% in July.
Crude Oil Prices
Crude oil prices traded lower. Brent crude futures fell 0.24% to $97.79 a barrel, while US West Texas Intermediate crude was at $90.07 a barrel, down 0.39%.
Gold Rate Today
Gold prices were steady as softer inflation data eased hopes of a Fed rate hike. Spot gold price fell 0.1% to $4,151.12 an ounce, while silver price declined 0.3% to $60.24 an ounce, after falling 1.7% in the previous session to an eight-week low.
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