Pre-market stocks:
On May 6, the main Sensex and Nifty indexes are probably going to open strongly because the GIFT Nifty is showing signs of a positive start for the overall index, up 112 points.
Friday’s weaker closing of the equity markets was caused by profit-taking as the Nifty 50 reached fresh highs. FPIs sold off as industry heavyweights like RIL, L&T, and HDFC Bank slumped.
Nifty fell 172 points (0.76%) to close at 22,476 from a peak of 22,795. Sensex ended the day at 73,878, down 733 points (0.98%) after swinging 1,627 points intraday. Market capitalization fell to Rs 406 trillion from Rs 2.5 trillion. The India VIX is up for the seventh straight session, closing at 14.6, up 8.7%, as market volatility is fueled by factors including elections, US economic concern, FPI selling, and earnings anxiety.
Key events-pre-market stocks
April’s India Services PMI and Composite PMI will be released by S&P Global and HSBC, and RBI Governor Shaktikanta Das will speak at the BIS Innovation Summit in 2024.
US Exchanges
Tech stocks led the way higher on Friday following a dismal jobs report. The excitement is increased by AI’s earnings and Warren Buffett’s impending visit. S&P 500 gained 1.8%, Dow Jones increased 1.2%, and Nasdaq jumped 2%. Little caps went up as well. Ahead of or above their 50-day moving average, key indices closed.
Investor optimism was bolstered by the disappointing April jobs report. The positive feeling was reinforced by Powell’s dovish comments. Next week is a light economic calendar; the earnings season is heating up. shire Reports from Hathaway, Palantir, and Arm are noteworthy.
Markets in Asia
As traders wait for China to return from vacation, Asian stocks remain stable. Beijing’s supporting measures are likely to boost mainland markets.
Following a 1.3% increase in the S&P 500 on Friday, Australia’s stock index increased as a result of the US jobs report that was below estimates, which stoked hopes of a rate decrease by the Federal Reserve this year. While Japanese markets were closed for a holiday last week, Chinese equities on the Nasdaq saw a 5.5% surge.
Crude oil
Following Israel’s closure of the Kerem Shalom humanitarian crossing into Gaza on Sunday in response to a barrage of rockets fired by Hamas, oil prices increased in early trading. The ongoing hostage and cease-fire discussions are at jeopardy because of this incident.
Read more: Why invest in crude oil sector
To further tighten the oil market, Saudi Arabia raised the price of its crude exports to Asia. The Reserve Bank of Australia, which is anticipated to take a hawkish posture in response to last month’s stronger-than-expected inflation figures, is one of the central banks that traders will be closely watching this week. In addition, figures on inflation in important emerging economies and future Chinese activity statistics are expected.
Further read: Day Trading Update