Indian Stock Market Opens Higher: Global Cues, Sensex Rejig & More
Indian Stock Market Poised for Positive Start
The Indian stock market is expected to open on a positive note on Friday, May 19th, following a mixed bag of signals from global markets. Asian markets mostly showed gains, while the US stock market ended with minimal changes after the House of Representatives passed President Trump’s tax bill.
Yesterday’s Performance: A Mixed Day for Indian Equities
On Thursday, May 18th, Indian stocks closed lower amid worries about geopolitical tensions, US debt concerns, and high valuations in the domestic market. The Sensex dipped 644.64 points (0.79%) to settle at 80,951.99, while the Nifty 50 fell 203.75 points (0.82%) to close at 24,609.70.
Key Global Market Cues to Watch
Asian Markets: Asian markets saw mostly positive movement on Friday, driven by investors assessing a range of economic data from the region. Japan’s Nikkei 225 gained 0.48%, and the Topix rose 0.5%. South Korea’s Kospi added 0.36%, while the small-cap Kosdaq declined 0.34%. Hong Kong’s Hang Seng index futures signaled a lower opening.
Gift Nifty: Gift Nifty, an indicator of the Nifty 50 futures, was trading around 24,690, suggesting a mildly positive start for Indian stock market indices.
Wall Street: The US stock market ended Thursday’s session with minimal changes after the House of Representatives passed President Trump’s tax and spending bill. The Dow Jones Industrial Average edged down 1.35 points, the S&P 500 fell 2.60 points (0.04%), and the Nasdaq Composite closed 53.09 points (0.28%) higher.
US Treasury Yields: Thirty-year US bond yields reached their highest point in 19 months before easing on Thursday, driven by concerns about the US fiscal outlook and demand for government debt. The 30-year bond yield settled at 5.0521%, down 3.7 basis points.
India-Specific News
Sensex Rejig: Tata group-owned Trent and state-owned Bharat Electronics will join the influential 30-share Sensex, replacing Nestle India and IndusInd Bank. These changes will take effect from June 23rd.
Other Global Developments
US Jobless Claims: The number of Americans filing new claims for unemployment benefits fell last week, signaling a strong labor market. Claims dropped by 2,000 to a seasonally adjusted 227,000 for the week ending May 17th.
Japan Inflation: Japan’s core inflation accelerated to its fastest pace in over two years in April, exceeding market expectations. The core consumer price index (CPI), which excludes fresh food but includes oil prices, rose 3.5% year-on-year.
Gold and Crude Oil Prices: Gold prices were on track for their best weekly gain in over a month, fueled by a weaker US dollar and safe-haven demand. Brent crude oil prices edged lower, heading for their first weekly decline in three, weighed down by a larger-than-expected increase in OPEC production.
Looking Ahead
As the Indian stock market opens, investors will be closely watching global market trends, US Treasury yields, and domestic economic indicators.
