RSS Sensex, Nifty Set To Open On Positive Note After Wall Street Rebound

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 RSS Sensex, Nifty Set To Open On Positive Note After Wall Street Rebound

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Indian equities are poised for a positive opening on Monday, buoyed by a strong rebound in U.S. markets last Friday. However, a sense of caution may linger as foreign portfolio investors maintain their selling streak, and market participants await key insights from the upcoming Q3 earnings season, starting with TCS this week.

In terms of economic data, investors are anticipating the release of Composite PMI, Services PMI, industrial output, and GDP growth figures. Notably, in advance of the Union Budget for FY26, the National Statistics Office is set to unveil the first estimates of GDP for FY25 on January 7.

This morning, Asian markets exhibited volatility, despite a robust performance in China's services sector, reaching a seven-month peak. Meanwhile, the U.S. dollar showed mixed movements against major currencies following favorable outcomes in the U.S. House Speaker elections.

China's onshore yuan reached a significant milestone for the first time since late 2023, amid speculation about the People's Bank of China planning to issue substantial offshore yuan bonds in Hong Kong this month.

On the commodities front, gold experienced an uptick in Asian trading owing to safe-haven demand, while oil prices remained at levels not seen since October.

U.S. equities concluded last Friday sharply higher after facing initial turbulence in the new year. Major technology stocks rallied, driven by expectations of sustained investment in artificial intelligence. Bond yields receded slightly as data revealed a slower contraction in U.S. manufacturing activity for December. As a result, the tech-centric Nasdaq Composite rose by 1.8%, the S&P 500 gained 1.3%, breaking a five-session losing streak, and the Dow increased by 0.8%.

In contrast, European stocks ended Friday on a subdued note as the holiday-shortened week wrapped up. Losses were led by luxury, automotive, and mining stocks, following reports that China plans to significantly expand funding through ultra-long treasury bonds in 2025. Consequently, the pan-European STOXX 600 fell by 0.5%, Germany’s DAX dropped by 0.6%, the UK’s FTSE 100 edged down 0.4%, and France’s CAC 40 declined by 1.5%.

The material has been provided by InstaForex Company - www.instaforex.com
 
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