EconomyMarkets
GIFT Nifty points to a firm start as Asian markets bounce back
Chip stocks led a rebound in Tokyo and Seoul on Friday morning, Wall Street ended a three-day losing run and Brent crude slipped. Foreign funds sold heavily in India on Thursday.
Key points
- GIFT Nifty futures were about 100 points higher near 23,090 early on Friday.
- South Korea's Kospi rose close to 3% and Japan's Nikkei about 1.8%.
- Foreign investors sold ₹5,285 crore of Indian shares on Thursday.
Indian shares look set to open higher on Friday after a rebound across Asian markets, with GIFT Nifty futures trading about 100 points up, near 23,090, shortly after 8 am. The Nifty 50 closed at 22,997.35 on Thursday after its best day of the week.
Chip stocks led the recovery in Asia after days of selling linked to worries about artificial intelligence valuations. South Korea’s Kospi was up close to 3% and Japan’s Nikkei 225 about 1.8%. Hong Kong’s Hang Seng and the Shanghai Composite were both up more than half a per cent.
Wall Street ends losing streak
US stocks ended a three-day losing run on Thursday as investors moved money out of technology and into the rest of the market. The Dow Jones Industrial Average rose 1.08% to 52,177.69, the S&P 500 gained 0.33% to 7,744.06 and the Nasdaq Composite edged up 0.08% to 26,713.02. The small-company Russell 2000 rose 1.38%.
Technology shares fell 0.65% and energy 1.58%, while health care led the gainers. Nvidia lost 1.84%. A sharp fall in Treasury yields helped markets shrug off a hot inflation reading: US producer prices rose 1.3% in September from August and 6.3% from a year earlier. The 10-year yield fell 9 basis points to 5.10%. US stock futures were slightly higher in Asian trade.
Oil steady
Brent crude for December delivery slipped 0.32% to $105.59 a barrel in Asia, as traders weighed a possible easing of US restrictions on the shadow fleet of tankers. US crude had jumped 3.1% to $98.07 on Thursday after government data showed commercial stockpiles fell by 8.6 million barrels.
Foreign selling and results
Foreign institutional investors sold a net ₹5,285.37 crore of Indian shares on Thursday, even as the Sensex rose 1,534 points, while domestic institutions bought ₹3,319 crore.
IT shares will be in focus after Wipro guided for flat to lower revenue in the December quarter and Tech Mahindra announced a 1:1 bonus issue. Punjab National Bank, DLF, Federal Bank, Oberoi Realty, Bajaj Housing Finance, Crompton Greaves Consumer Electricals and Ujjivan Small Finance Bank are among the companies due to report results on Friday.