Markets could open mildly higher following largely positive Asian markets and despite mildly negative US markets on Thursday - HDFC Securities
Indian markets could open mildly higher following largely positive Asian markets today and despite mildly negative US markets on Thursday.
U.S. stocks finished well off session lows but ended with losses for a third day on Thursday, as rising coronavirus cases, especially in Europe, resulted in new restrictions on businesses and travel. Investor sentiment also took a hit following a rise in weekly U.S. jobless claims and a lack of progress in Congress on another fiscal stimulus bill which is now unlikely until after the November elections.
The Philadelphia Federal Reserve’s factory index jumped to 32.3 in October well above consensus forecast of 13.5. The index hit 15 in September. Separately, the Empire State manufacturing index fell to 10.5 in October from 17 in the prior month. In economic reports, U.S. weekly jobless claims data climbed 53,000 to 898,000, representing the highest level since Aug. 22. Continuing claims fell to roughly 10 million, from 11.2 million in the prior week. Much of that decrease came not from workers being hired, but from claimants reaching the end of their state’s unemployment programs.
After contracting for six straight months, India’s exports rose 6% to $27.58 billion in September. The country's imports declined 19.6% to $30.31 billion in September. The trade deficit in September was $2.72 billion, compared to $11.67 billion in the year-ago month. Gold imports declined by nearly 53% to $601.43 million in September.
Stocks across Asia-Pacific were subdued in early trade on Friday, with dampened sentiment on the coronavirus front.
Indian benchmark indices fell sharply on Oct 15 after a 10 day upmove. At close the Nifty was down 290.60 points or 2.43% at 11680.40 and the Sensex fell 1,066.33 points or 2.61% at 39728.41. The fall on Thursday reversed the gains of the previous 6 days. Bank Nifty led the fall falling 3.36% to close at 23072.
The Nifty after so many attempts has failed to go above the January high of 12431. A large bear candle at the top could result in more weakness if Nifty does not stop falling in the next 1-2 days. On falls the Nifty could take support in the 11522-11605 band.
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