Indian markets are anticipated to start on a positive trajectory this Friday as investors eagerly await the unveiling of the Economic Survey 2025 in Parliament. However, potential gains could be limited due to U.S. President Donald Trump's renewed tariff threats and cautious sentiment ahead of both the Union Budget announcement this weekend and next week's Monetary Policy Committee (MPC) meeting.
On Thursday, the benchmark indices, Sensex and Nifty, managed to close with modest gains, marking their third consecutive session on the rise. Meanwhile, the Indian rupee depreciated by 9 paise, finishing at 86.64 per U.S. dollar amid ongoing foreign fund outflows.
As per provisional data from the National Stock Exchange, foreign portfolio investors continued their trend as net sellers of Indian stocks for a 20th consecutive session on Thursday, divesting shares to the tune of Rs 4,583 crore.
Across Asia, stock markets were generally positive this morning, although trading in Hong Kong and Chinese markets was paused in observance of the Lunar New Year holiday. U.S. Treasury yields remained stable after little fluctuation in the previous session.
Gold prices surged to a record high of $2,800 per ounce, fueled by President Trump's tariff threats on Canada, Mexico, and China. He also issued warnings of imposing 100 percent tariffs on BRICS member nations should they proceed with plans to establish a new BRICS currency or endorse an alternative to the U.S. dollar.
Oil prices saw an uptick as investors awaited the Organization of the Petroleum Exporting Countries' (OPEC) response to Trump's recent appeal for increased production.
U.S. stocks experienced some volatility before ending the session on a higher note, driven by generally favorable tech company earnings, positive remarks from Tesla, and President Trump's reiterated intent to impose 25 percent tariffs on Canadian and Mexican imports on February 1.
In economic developments, U.S. GDP increased by 2.3 percent in the fourth quarter of 2024, following a 3.1 percent growth in the previous quarter, while jobless claims saw a larger-than-expected decline, according to separate reports.
The Dow inched up by 0.4 percent, nearing its record high set in early December. The S&P 500 gained 0.5 percent, and the Nasdaq Composite, rich in technology stocks, rose by 0.3 percent.
In Europe, stock markets closed higher on Thursday following the European Central Bank's (ECB) anticipated 25-basis point interest rate cut, with guidance for an additional cut in March amid economic growth concerns. The pan-European STOXX 600 climbed 0.9 percent, the German DAX advanced by 0.4 percent, France's CAC 40 increased by 0.9 percent, and the U.K.'s FTSE 100 gained 1 percent.
