The Indian stock market, represented by the Sensex and Nifty 50, is set to open lower and experience volatility on Friday. This comes after both indices dropped more than 2% in the previous session.
Here are the important updates affecting the market:
Market Downturn:
On Thursday, the Indian stock market experienced its worst intraday fall in two months, with the Sensex dropping 1,769 points (2.10%) to close at 82,497 and the Nifty 50 falling 546.8 points (2.12%) to end at 25,250. Investor sentiment was heavily influenced by the escalating Iran-Israel conflict.
Global Influences:
Concerns about rising Brent crude prices, the ongoing conflict in the Middle East, and the possibility of foreign investors moving funds from India to China have dampened market sentiment. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, expects stock-specific actions as companies prepare to announce quarterly updates.
Asian Market Trends:
Asian markets were mixed on Friday. Japan’s Nikkei 225 rose by 0.34%, while South Korea’s Kospi added 0.19%. However, the Hang Seng index in Hong Kong indicated a lower opening, and markets in mainland China are closed until October 8.
Gift Nifty Indicator:
Gift Nifty was trading around 25,410, which is about 65 points lower than the previous close, suggesting a negative start for Indian indices.
US Market Performance:
The US stock market closed lower due to concerns over the Middle East. The Dow Jones fell by 184.93 points (0.44%), the S&P 500 decreased by 9.58 points (0.17%), and the Nasdaq dropped 6.65 points (0.04%).
Jobless Claims in the US:
New applications for unemployment benefits in the US rose by 6,000 last week, reaching 225,000 claims. This was slightly higher than economists’ predictions.
US Services Sector Growth:
The US services sector experienced strong growth, with the PMI index rising to 54.9 in September, up from 51.5 in August. This indicates increased activity in the services sector.
Rising Oil Prices:
Crude oil prices increased amid the ongoing conflict, with Brent crude rising to $77.71 a barrel and US West Texas Intermediate at $73.79. Both benchmarks are expected to gain around 8% for the week.
Stronger Dollar:
The dollar strengthened to a six-week high, with the dollar index reaching 101.91.
FII Selling Activity:
On Thursday, foreign institutional investors (FIIs) sold Indian shares worth ₹15,243.27 crore, while domestic institutional investors (DIIs) bought shares worth ₹12,913.96 crore.
Final Thoughts
With these changes, investors should stay alert for potential volatility in the market as both domestic and global factors continue to play a significant role in stock performance.
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