Sensex Today Live : What to expect from Indian stock market in trade on May 13

Sensex Today Live : The Indian stock market, represented by the Sensex and Nifty 50 indices, is anticipated to commence the week on a downbeat note, reflecting weak global market indicators. The Gift Nifty’s trends also suggest a sluggish start for the Indian benchmark index, trading around the 22,080 level, nearly 60 points lower than the Nifty futures’ previous close.

Despite the anticipated weak start, the domestic equity benchmark indices concluded higher on Friday, with the Nifty 50 maintaining above the 22,000 level. The Sensex rose by 260.30 points to end at 72,664.47, while the Nifty 50 increased by 97.70 points (0.44%) to settle at 22,055.20.

On the daily chart, the Nifty 50 formed a small positive candle with minor upper and lower shadows. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, this pattern suggests a temporary market pause following a sharp decline. The Nifty is positioned at the critical trend line support around 21,900, with no signs yet of a higher bottom reversal pattern forming at the lows. (Read the full story here.)

Sensex Today Live : Eight key things that changed for market over weekend – Gift Nifty, US consumer sentiment to China CPI

Sensex Today Live : Indian equity indices, Sensex and Nifty 50, are projected to start the week on a lower note, influenced by negative signals from international markets. Asian markets have seen a downturn following significant Chinese economic data and US President Joe Biden’s plans to increase tariffs on certain Chinese goods.

Investors will be closely monitoring several key market indicators this week, including Q4 results, India’s retail inflation figures, domestic and international macroeconomic data, foreign capital flow trends, crude oil prices, and other global market signals.

Despite closing higher on Friday, the benchmark indices of the Indian stock market experienced a weekly loss of over 2%, with substantial selling observed in the broader markets. The Sensex rose by 260.30 points (0.36%) to close at 72,664.47, while the Nifty 50 increased by 97.70 points (0.44%) to settle at 22,055.20.

The markets were under pressure due to heavy FII selling and uncertainties surrounding the ongoing general elections. The earnings season has accelerated, with many significant results leading to stock-specific movements. The fourth phase of the ongoing Lok Sabha election may contribute to some market volatility. Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, anticipates that the market will consolidate within a broader range, taking cues from Q4 results, global factors, and news related to the general election. (Read the full story here.)

Sensex Today Live : Asian peers weigh on sentiment, Gift Nifty muted; Indian markets likely to open on subdued note

Sensex Today Live : Indian benchmark indices were expected to open on a muted to positive note, tracking subdued trading among Asian peers, which were weighed down by the weak economic data in China.

At 8:06 am, Gift Nifty futures were trading at 22,107, marginally ahead of Nifty 50’s Friday close of 22,055, reiterating the liklihood of a muted to positive opening for Indian markets

A rally in global equity markets lifted stocks in Europe to record highs on Friday amid strong corporate earnings and hopes central bank interest rate cuts are near, while the dollar edged higher despite signs of slowing U.S. economic growth.

European shares posted their biggest weekly gain since late January, with the pan-regional STOXX 600 index rising for a sixth straight session, while the FTSE 100 in London hit yet another record high.

The Dow industrials index registered its eighth daily advance as the three major Wall Street indexes posted weekly gains but the Nasdaq closed marginally lower on the day.

Strong performance on both sides of the Atlantic, along with gains overnight in Tokyo and elsewhere in Asia, pushed MSCI’s all-country world index within 0.2% of a record closing high.

U.S. equity markets took comfort from earning season as corporate results in aggregate beat expectations, said Dec Mullarkey, managing director of investment strategy and asset allocation at SLC Management in Boston.

“It certainly gave some assurance that growth is holding up while companies protect profit margins,” Mullarkey said, referring to corporate America.

While in Europe, “the prospect of rate cuts is helping drive equity markets across the euro zone as it still looks like a decent value play to global asset allocators,” he said.

The pan-European STOXX 600 index closed up 0.77%, the FTSE ended 0.63% higher and MSCI’s gauge of stocks across the globe rose 0.31% – just 0.2% from a new closing high.

The Dow Jones Industrial Average rose 0.32%, the S&P 500 gained 0.17% and the Nasdaq Composite eased 0.03%.

The dollar pared initial declines and turned modestly higher as investors assessed a reading on U.S. consumer sentiment and sifted through a flurry of comments from Fed officials.

The University of Michigan’s preliminary reading of consumer sentiment came in at 67.4 for May, a six-month low and below the 76.0 estimate of economists polled by Reuters. In addition, the one-year inflation expectation climbed to 3.5% from 3.2%.

“The U.S. exceptionalism trade is fading. We did see a decline yesterday based on the higher-than-expected rise in jobless claims,” said Karl Schamotta, chief market strategist at Corpay in Toronto.

“The underlying trend here does look as if the dollar’s essentially peaking here and then it might decline.”

The dollar index, which measures the U.S. currency against a basket of six peers, gained 0.07% to 105.29. The euro slid 0.1% to $1.077, while the yen weakened 0.17% to 155.74 per dollar. The pound posted a modest weekly loss after the Bank of England on Thursday paved the way for the start of rate cuts as soon as next month and data showed the British economy exited a mild recession in the first quarter of this year.

Markets await both next week’s producer price index and the consumer price index for signs that U.S. inflation has resumed its downward trend toward the Fed’s 2% target rate.

In contrast, markets now imply a 50-50 chance of a BoE cut in June and are almost fully priced for August. They also imply an 88% chance the European Central Bank will ease in June.

BOE Governor Andrew Bailey said there could be more reductions than investors expect, the latest sign of the growing divergence between the Europe and U.S. rate outlooks.

Traders currently anticipate roughly 42 basis points of cuts this year from the Fed. In comparison, traders are pricing in 55 bps of easing from the BoE this year, while anticipating 68 bps of cuts from the ECB.

Treasury yields rose as traders waited on next week’s key April inflation data to guide expectations of Fed monetary policy.

The yield on benchmark 10-year Treasury notes rose 5.1 basis points to 4.5%, while the two-year yield, which typically moves in step with interest rate expectations, rose 6.3 basis points to 4.8698%.

Oil prices fell by about $1 a barrel as comments from Fed officials indicated higher-for-longer interest rates, which could hinder demand from the world’s largest crude consumers. U.S. crude futures fell $1.00 to settle at $78.26 a barrel and Brent settled down $1.09 at $82.79 a barrel.

Gold prices rose, en route to their best week in five, with zero-yield bullion building on momentum fueled by weaker U.S. jobs data this week that reinforced expectations for the Fed to cut rates this year.

U.S. gold futures for June delivery settled 1.5% higher at $2,375.00 per ounce.

Bitcoin fell 3.19% to $60,613.00.