Indian Stock Market: The domestic equity market indices are expected to open cautiously on Friday, following a weak trend seen in global markets.

Asian markets experienced declines, mirroring the negative sentiment in the US stock market, which closed in the red overnight following the release of weekly jobless claims data. Despite briefly surpassing the 40,000-mark, the Dow Jones ultimately trimmed its gains. Conversely, on Thursday, the Indian stock market indices saw a nearly one percent increase, propelled by late buying across various sectors amidst mixed global signals.

The Sensex surged by 676.69 points, or 0.93%, to reach a closing figure of 73,663.72, while the Nifty 50 settled at 22,403.85, marking a gain of 203.30 points, or 0.92%.

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., attributed the rebound in domestic equities to positive global cues and short covering on Nifty’s weekly expiry. He also expressed expectations for a gradual market recovery, albeit noting concerns surrounding consistent FII selling, India VIX levels remaining above 20, ongoing general election polling, and its potential impact on volatility.

Here are the key global market cues influencing the Sensex today:

Asian Markets: Asian markets observed a decline, reflecting overnight losses on Wall Street and in anticipation of significant economic data from China. The Nikkei 225 in Japan fell by 0.78%, while the Topix dropped by 0.33%. South Korea’s Kospi decreased by 0.11%, and the Kosdaq plunged by 1.66%. However, Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today: The Gift Nifty was trading around the 22,477 level, representing a premium of nearly 20 points from the Nifty futures’ previous close. This indicates a flat-to-positive start for the Indian stock market indices.

Wall Street: The US stock market concluded on a lower note after the Dow Jones reached an intraday high of 40,000 for the first time. The Dow Jones Industrial Average declined by 38.62 points, or 0.10%, to 39,869.38, while the S&P 500 fell by 11.05 points, or 0.21%, to 5,297.10. The Nasdaq Composite also ended lower, dropping by 44.07 points, or 0.26%, to 16,698.32. Notable stock movements included a 7% rally in Walmart shares, a 4.8% decline in Deere’s share price, and a 4.7% rise in Chubb shares. However, GameStop’s share price plummeted by 30%, and AMC Entertainment stock dropped by 15%.

Dow Surpasses 40,000: The Dow Jones industrial average surpassed the 40,000 level for the first time, marking a third consecutive record intraday high. This milestone was driven by optimism regarding potential US interest rate cuts and strong earnings. However, the blue-chip index eventually pared gains and closed slightly lower.

US Jobless Claims: The number of Americans filing new claims for unemployment benefits decreased last week. Initial claims for state unemployment benefits dropped by 10,000 to a seasonally adjusted 222,000 for the week ended May 11.

Bank of Japan: Bank of Japan Governor Kazuo Ueda stated that the central bank currently has no immediate plans to sell its substantial holdings of exchange-traded funds (ETFs). Ueda emphasized the need for careful consideration regarding the future of these ETF holdings.

Dollar, Treasury Yields: The US dollar and treasury yields experienced gains on Thursday. The dollar index, tracking the US currency against six peers, rose by 0.27% to 104.47. US Treasury yields rebounded from nearly six-week lows, with the benchmark 10-year yields up at 4.377%, and the two-year yields rising to 4.793%.

Oil Prices: Crude oil prices traded higher, with global benchmark Brent set for its first weekly increase in three weeks. Brent crude oil prices rose by 0.3% to $83.48 a barrel, while US West Texas Intermediate (WTI) crude futures increased by 0.2% to $79.41 a barrel.