The Indian stock market indices are likely to open on a tepid note following weak global cues.
Asian markets traded lower while US markets ended mixed overnight after the release of better than expected US GDP data.
On Wednesday, the domestic indices ended with strong gains led by gains in IT, banks and auto stocks.
The Sensex rallied 727.71 points, or 1.10%, to 66,901.91, while the Nifty 50 closed at 20,096.60 level, up 206.90 points or 1.04%.
“We expect the market momentum to sustain over the next few days. However, several important events including India GDP, monthly F&O expiry, state election exit polls and OPEC+ meeting on Thursday could induce some volatility over the last 2 days. Market will also react to US GDP data,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower following overnight weakness on Wall Street and amid key economic data releases in the region.
Japan’s Nikkei 225 fell 0.25% and the Topix declined 0.14%. South Korea’s Kospi dropped 0.29%, while Kosdaq was flat. Hong Kong’s Hang Seng index futures indicated a positive start.
Gift Nifty
Gift Nifty was trading around 20,142 level, as compared to Nifty futures’ previous close of 20,143, indicating a flat start for the Indian benchmark indices.
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US Markets
US stocks ended mixed on Wednesday after a robust upward GDP revision eased recession fears, while Federal Reserve officials’ remarks raised questions about the duration of the central bank’s restrictive policy, Reuters reported.
The Dow Jones Industrial Average rose 13.44 points, or 0.04%, to 35,430.42, while the S&P 500 fell 4.31 points, or 0.09%, to 4,550.58. The Nasdaq Composite ended 23.27 points, or 0.16%, lower at 14,258.49.
Humana Inc and Cigna Group shares fell 5.5% and 8.1%, respectively. General Motors share price jumped 9.4%, Ford Motor Co shares gained 2.1%, while CrowdStrike Holdings rallied 10.4%. NetApp share price jumped 14.6%.
US GDP
The US economy grew faster than initially thought in the third quarter, the report from the Commerce Department showed on Wednesday. US GDP increased at a 5.2% annualized rate last quarter, revised up from the previously reported 4.9% pace. It was the fastest pace of expansion since the fourth quarter of 2021.
Economists polled by Reuters had expected GDP growth would be revised up to a 5.0% rate. The economy grew at a 2.1% pace in the April-June quarter.
Read here: US GDP growth expands at annual rate of 5.2% in Q3, beats previous estimate of 4.9%
Japan’s factory output
Japan’s industrial production rose more than expected in October. Factory output rose 1% from the previous month, beating economists’ forecasts of a 0.8% gain, the industry ministry said Thursday. Production increased 0.9% compared with a year earlier.
Oil prices gain
Crude oil prices rose on expectations of fresh supply cuts from OPEC. Brent crude futures advanced by $1.42, or 1.7%, to settle at $83.10 a barrel, while US West Texas Intermediate (WTI) crude futures gained $1.45, or 1.9%, to settle at $77.86 a barrel.
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(With inputs from Agencies)
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