Nifty 50 Likely to Open Below 24,000 Amid Escalating India-Pakistan Crisis; ABB India, Swiggy in Focus for Q4 Results
Pre-Market Update: On Friday, May 9, Indian benchmark indices — Sensex and Nifty 50 — are likely to open with a gap-down, influenced by escalating tensions between India and Pakistan.
Tensions between India and Pakistan escalated after Pakistani-origin drones and missiles targeted military stations in Jammu, Pathankot, and Udhampur. The Defence Ministry responded swiftly, neutralising the threats.
As of 07:30 am, Gift Nifty hovered near the 23,980 mark, showing a discount of about 209 points over the previous close of Nifty futures.
Talking about global cues, Asian markets showed a mixed trend; US markets closed on a positive note overnight following a trade deal signed between the United States and the United Kingdom.
A few prominent Indian companies are scheduled to announce their Q4 earnings today, which could trigger stock-specific moves on Dalal Street. However, broader market sentiment may hinge more on unfolding developments at the border, which could help set the overall market direction for the day.
ABB India, Dr Reddy's Laboratories, Swiggy, Bank of India, KPR Mill, Thermax, Cholamandalam Financial Holdings and Motherson Sumi Wiring India will announce their Q4 earnings today.
On May 08, Foreign Institutional Investors (FIIs) were net buyers, purchasing ₹2,007.96 crore worth of shares. Domestic Institutional Investors (DIIs) sold shares worth ₹596.25 crore during the same period.
FIIs remain net buyers for the last 16 trading sessions, infusing optimism in the Indian stock market.
On Thursday, Indian equity markets closed in the red, slipping in the final trading hours due to rising geopolitical tensions between India and Pakistan. The decline followed news that Indian armed forces had struck multiple Pakistani locations targeting air defence radars and related systems.
The Sensex dropped by 411.97 points (0.51%) to end at 80,334.81, while the Nifty 50 declined by 140.60 points (0.58%) to settle at 24,273.80.
With uncertainty lingering and India VIX staying elevated, market sentiment remains cautious.
Asian markets traded mixed on Friday as investors awaited China’s April trade data and uncertainty over the US-China trade deal.
U.S. stocks closed higher on Thursday following the announcement of a fresh trade agreement between the United States and the United Kingdom. The Dow Jones Industrial Average advanced 254.48 points, or 0.62%, finishing at 41,368.45. The S&P 500 moved up by 32.66 points, or 0.58%, to settle at 5,663.94. Meanwhile, the Nasdaq Composite climbed 189.98 points, gaining 1.07%, to end the session at 17,928.14.
In the week ending May 3, initial jobless claims in the United States dropped by 13,000 to a seasonally adjusted total of 228,000. This figure came in below the market expectation of 230,000, indicating a stronger-than-anticipated labour market.
The Bank of England reduced its key interest rate by 0.25 percentage points to 4.25%. However, a rare three-way division among policymakers reflected in a 5-4 vote has tempered market expectations for a faster pace of future rate reductions.
Gold prices edged higher as investors awaited the upcoming US-China trade discussions scheduled for the weekend. Spot gold rose by 0.1% to $3,309.39 per ounce. This follows a sharp drop of nearly 2% in the previous session, during which spot gold touched a low of $3,288.39.
Crude oil continued its upward trend, building on a nearly 3% surge seen in the last session. Brent crude moved up 0.17% to $62.95 per barrel, and US WTI crude futures also advanced 0.17%, reaching $60.01.
The US dollar strengthened across major currencies after the announcement of a trade agreement between the US and UK. The dollar index, which tracks the greenback against a group of six currencies including the euro and yen, rose by 0.77% to 100.66.
Disclaimer: The article is for informational purposes only and not investment advice.
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