As the Indian stock market gears up for Friday’s trading session, global cues indicate a tepid opening. With mixed Asian market performances and the absence of US trading due to Thanksgiving, several factors are poised to influence the stock market. Here are five significant changes overnight that could shape the day’s trading for the Sensex and Nifty.
Global Market Mix:
Asian markets displayed a mix of movements, with Japan’s Nikkei 225 and Topix gaining, while South Korea’s Kospi eased. The Hang Seng Index fell, and China’s indices showed varied trends. This diversity may influence sentiment in the Indian market, creating a need for cautious trading strategies.
US Thanksgiving Holiday Impact:
The US markets remained closed on Thursday for Thanksgiving, and Friday will see only half-day trading. The shortened trading hours could result in subdued market activity. Investors will be watching for any ripple effects from Wednesday’s gains in the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite.
Oil Price Decline:
Crude oil prices extended their decline following an unexpected delay in the OPEC+ policy meeting. Speculation arises that the oil producer group may not deepen output cuts next year. Brent crude and US West Texas Intermediate crude both experienced losses, influencing energy-related stocks and impacting market dynamics.
Japanese Economic Indicators:
Japan’s economic indicators present a mixed picture. While the core consumer price growth in October was slightly lower than expected, indicating potential shifts in monetary stimulus, the flash Japan manufacturing purchasing managers’ index (PMI) showed a continued contraction for the sixth consecutive month. These indicators may influence investor confidence in the broader Asian market.
Market Expert Insights:
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, suggests a potential range-bound movement in the Indian market, with heightened activity in the primary market. Investors should be prepared for stock-specific actions in the broader space, highlighting the need for a strategic and informed approach to trading.
Conclusion
As the Indian stock market prepares for the day’s trading, global cues suggest a nuanced landscape. The impact of mixed Asian markets, the aftermath of the US Thanksgiving holiday, fluctuations in oil prices, and contrasting Japanese economic indicators may collectively shape market sentiment. Nifty, in particular, could be influenced by the decline in crude oil prices. Traders and investors should remain vigilant, considering these factors for well-informed decision-making in today’s market.
