The Indian stock market is expected to open higher on Friday amid a technical rebound on short-covering after a sharp sell-off in the previous session. However, sentiment is likely to remain cautious on weak global market cues amid renewed Middle East tensions.
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 22,370 level, a premium of nearly 77 points from the Nifty futures' previous close.
In the previous session, the benchmark equity indices ended sharply lower, weighed down by selling across the board.
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The Sensex crashed 1,045.46 points, or 1.44%, to close at 71,593.24, while the Nifty 50 settled 371.25 points, or 1.64%, lower at 22,231.80.
“With the Nifty 50 index making fresh lows amid the ongoing corrective phase and market breadth deteriorating sharply, the near-term setup remains firmly cautious. Participants should align their positions accordingly and adopt a hedged approach, particularly given the possibility of heightened volatility amid the ongoing earnings season,” said Ajit Mishra, SVP – research, Religare Broking.
Here are five key factors that may drive the Indian stock market today:
Asian Markets
Asian stock market traded mostly lower on Friday, following overnight losses on Wall Street, weighed down by selloff in tech stocks.
The MSCI Asia Pacific equities index fell 0.1%. Japan's Nikkei 225 declined 0.61%, while the Topix eased 0.09%. Hong Kong's Hang Seng index futures indicated a marginally higher opening.
Markets in South Korea and Taiwan are closed for a holiday.
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Wall Street
US stock market indices ended mostly lower on Thursday, amid renewed concerns over artificial intelligence (AI) boom, with the Nasdaq posting its biggest one-day loss since mid-August.
The Dow Jones Industrial Average gained 51.77 points, or 0.10%, to 51,231.64, while the S&P 500 fell 36.41 points, or 0.47%, to 7,765.36. The Nasdaq Composite closed 345.35 points, or 1.25%, lower at 27,193.34.
US Tech Stocks
US technology stocks witnessed heavy selling amid concerns over AI boom after OpenAI's revenue underwhelmed. Reports said OpenAI told investors its annualized revenue at the end of September was roughly $50 billion, lower than the $68 billion figure reported late last month.
Nvidia stock price declined 2.94%, AMD shares dropped 3.90%, Broadcom shares plunged 4.35%, Microsoft shares fell 1.35%, Intel stock price slipped 5.34%, Micron Technology shares tanked 4.79% and Oracle shares shed 5.5%.
US PERM Suspension
The US government suspended eight major technology companies, including Microsoft, Infosys, Wipro, Tata, Cognizant, and HCL Technologies from participating in Permanent Labor Certification Program used to secure employment-based green cards for foreign workers, accusing them of abusing the H-1B visa programme.
TCS Q2 Results
Tata Consultancy Services (TCS) reported a 4% QoQ rise in Q2FY27 consolidated net profit to Rs 13,884 crore, while its revenue grew 1.3% sequentially to Rs 73,188 crore. EBIT rose 1.4% to Rs 17,553 crore, and EBIT margin was flat at 24%. TCS reported sequential revenue growth of 0.5% in constant currency terms. TCS also announced a dividend of Rs 12 per share.
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