The Indian stock market indices, Nifty 50 and Sensex, are expected to open on a weak note Friday tracking mixed cues from global peers.
Asian markets rebounded from lows to trade higher, while the US stocks ended lower overnight dragged by selling tech shares and hopes of interest rates staying higher for longer after strong US GDP data.
The domestic equity market suffered steep losses on Thursday with the benchmark indices ending lower for the sixth consecutive session amid multiple headwinds.
The Sensex plunged 900.91 points, or 1.41%, to 63,148.15, while broader Nifty 50 tanked 264.90 points, or 1.39%, to 18,857.25.
“Given the global uncertainties, there could be higher volatility in the near term and thus giving long term investors an opportunity to accumulate quality stocks at lower levels. We suggest to make higher allocation towards large caps as valuations are comfortable along with steady growth prospects,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — October 27
Here are key global market cues for Sensex today:
Asian Markets
Asian markets rebounded to trade higher on Friday as investors weighed on key economic data in the region.
Japan’s Nikkei 225 traded 0.56% higher and the Topix gained 0.6%. South Korea’s Kospi added 0.19%, while the Kosdaq fell marginally.
Hong Kong’s Hang Seng index futures were higher at 17,136, compared to the HSI’s close of 17,044.61.
Australia’s S&P/ASX 200 rose 0.29%, bouncing from a one-year low in the previous session.
Gift Nifty was trading around 18,953 as against Nifty futures’ previous close of 18,966, indicating a tepid start for the Indian indices.
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Wall Street
The US stock market ended lower on Thursday dragged by tech shares amid mixed quarterly earnings. The tech-heavy Nasdaq suffered the biggest percentage drop on cloudy earnings guidance and signs of economic resiliency that could lead the Federal Reserve to keep interest rates higher for longer than expected.
The Dow Jones Industrial Average declined 251.63 points, or 0.76%, to 32,784.3, while the S&P 500 dropped 49.54 points, or 1.18%, to 4,137.23. The Nasdaq Composite ended 225.62 points, or 1.76%, lower at 12,595.61.
Data showed that the US economy grew 4.9% in the third quarter.
Among stocks, Meta Platforms shares fell 3.7%, Alphabet shares tumbled 9.5% and Microsoft rose 3.1%.
Western Digital Corp slid 9.3%, while IBM shares jumped 4.9%. Amazon share price gained over 5% in extended trading.
Also Read: Global markets today: Wall Street, European stocks dip on cloudy earnings
US GDP growth accelerates to 4.9% in Q3
The gross domestic product (GDP) of the US accelerated at the fastest pace in nearly two years at an annualized rate of 4.9% in the third quarter, the US Bureau of Economic Analysis’ (BEA) first estimate showed.
The US GDP reading followed the 2.1% growth recorded in the second quarter and surpassed Wall Street expectations of 4.2%.
Read here: US GDP growth beats Street estimates, expands an annual rate of 4.9% in Q3
ECB ends rate hike streak
The European Central Bank left interest rates unchanged as expected on Thursday, ending a streak of 10 consecutive rate hikes.
The ECB has lifted rates by a combined 4.5 percentage points since July 2022 to combat runaway inflation but promised a pause last month.
Amazon beats third quarter revenue estimates
Amazon.com Inc. beat third quarter revenue estimates led by rising sales in its retail unit and significant cost cutting.
Amazon’s revenue in the third quarter rose 13% to $143.1 billion as compared to average analysts expectations of $141.41 billion. Net income rose to $9.9 billion in the third quarter from $2.87 billion, a year earlier.
The company forecast current-quarter revenue in the range of $160 billion and $167 billion.
US Dollar steadies
The dollar was headed for a weekly gain on Friday, aided by solid US growth figures that bolstered the case for higher-for-longer interest rate
The US dollar index steadied at 106.57, having hit a three-week high of 106.89 in the previous session, and was on track for a weekly gain of about 0.4%, Reuters reported.
Sterling edged 0.07% higher to $1.21355, the euro slipped 0.02% to $1.0560. The yen last stood at 150.38 per dollar.
(With inputs from Reuters)
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