Indian stock markets are expected to open on a subdued note this Friday, influenced by weak global trends and rising crude oil prices. Investors remain vigilant about potential tighter U.S. sanctions on Iran and Russia. Despite these concerns, the market's downside might be restrained by positive macroeconomic data released post-market hours on Thursday, highlighting India's economic resilience.
The latest statistics reflect a more favorable economic landscape, with India's inflation rate easing more than anticipated in November, falling from a 14-month peak observed the previous month. This slowdown is attributed to a deceleration in food prices. Concurrently, industrial production experienced a moderate uptick in October, as confirmed by separate reports from the National Statistical Office.
Consumer price inflation declined to 5.48 percent in November from the previous 6.21 percent in October, slightly below economists' expectations of 5.53 percent. In comparison, the inflation rate was 5.55 percent during the same period last year. Industrial production saw an annual increase of 3.5 percent in October, meeting forecasts following a 3.1 percent rise in the prior month.
Later today, the wholesale inflation figures for November are expected to be released, with predictions indicating a slight decline to 2.2 percent from October's rate of 2.36 percent.
On Thursday, benchmark indices Sensex and Nifty closed slightly lower, while the Indian rupee reached a new intra-day low of 84.88 before closing at Rs 84.87 against the dollar.
This morning, Asian markets predominantly trended lower as investors processed unexpectedly high jobless claims and elevated producer price data from the U.S., while anticipating the upcoming Federal Reserve policy meeting next week.
Meanwhile, a high-level economic policy meeting in Beijing offered strong rhetorical support for the economy but lacked specific details on policy or stimulus measures.
In the currency markets, the dollar held steady as Treasury yields stabilized after declining across the curve on Thursday.
Gold dipped below $2,700 per ounce, but remained on track for a weekly gain amid optimism about a Federal Reserve rate cut. Conversely, oil prices were poised for a weekly increase, driven by geopolitical tensions despite concerns over potential oversupply.
In the U.S., stock markets closed lower overnight following significant gains in the previous session. The Dow fell by half a percent, marking its sixth consecutive session of declines. This was prompted by data showing producer prices in November climbed by the most in five months, alongside an unexpected increase in weekly jobless claims.
The annual rise in producer prices accelerated to 3.0 percent in November, up from a revised 2.6 percent in October, sparking concerns about the pace at which the central bank might cut rates early next year. The Nasdaq Composite and the S&P 500 fell by 0.7 percent and 0.5 percent respectively.
In Europe, stock market performances were mixed on Thursday, following interest rate cuts by the European Central Bank (ECB) and the Swiss National Bank (SNB).
The pan-European STOXX 600 edged down 0.1 percent. France's CAC 40 ended the session slightly lower, while Germany's DAX and the U.K.'s FTSE 100 both posted marginal gains of 0.1 percent.
The material has been provided by InstaForex Company -
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