Indian stock market is anticipated to launch into a slow start on Friday, following S&P 500's significant daily percentage drop since Feb 13. This drop was due to unease about the future of interest-rate cuts.
Furthermore, there's much anticipation around the Reserve Bank of India's (RBI) imminent rate decision. This decision is likely impacted by factors like inflation, growth prospects, and the global economic climate.
RBI may choose to keep policy repo rates stable for now, but could potentially suggest a rate cut during the second half of the financial year.
On Thursday, key indexes like Sensex and Nifty managed to recover from an early decline and ended slightly higher. Meanwhile, the Rupee closed at a record low of 83.4375 against the dollar, despite suspected RBI intervention.
In international markets, Asian markets are playing it safe, facing lower trades with investors awaiting the significant U.S. jobs report. This report could provide valuable insights about the labor market and inflation.
Meanwhile, the dollar remains consistent against other major currencies, following its two-week low from the day before. Gold dipped in the Asian market, after reaching an all-time high in the previous session.
Oil prices are on the rise, moving towards a second weekly gain due to instability in the Middle East and Europe.
U.S. stocks sharply plummeted after a last-minute sale caused by worries that soaring energy prices would maintain high inflation, potentially causing the Federal Reserve to postpone its first cut to interest rates.
Markets were also shaken by hawkish remarks made by Federal officials and the increase in weekly jobless claims, reaching a two-month high last week. Both the Dow and the tech-heavy Nasdaq Composite suffered around a 1.4% slump, while the S&P 500 decreased by 1.2%
In contrast, European stocks rose on Thursday following the release of Eurozone's private sector and producer price inflation data, alongside the minutes from the European Central Bank's recent policy meeting.
The pan-European STOXX 600 saw a 0.2% gain, with Germany’s DAX also increasing by 0.2% and the UK's FTSE 100 adding 0.5%. France's CAC 40, however, ended slightly lower.
