Indian equities are expected to open on a strong note this Friday, buoyed by signs of resilience in the U.S. labor market which have lifted global markets.
Investors may see stock-specific movements, particularly for ABB India, Biocon, Eicher Motors, LIC, and Sobha as these companies disclosed their earnings results post-market hours on Thursday.
On Thursday, benchmark indexes Sensex and Nifty each declined by approximately 0.7% due to weak global cues and the Reserve Bank of India's decision to maintain the status quo on interest rates.
The Indian rupee traded within a narrow range before closing slightly lower by 2 paise at 83.97 against the U.S. dollar.
This morning, Asian markets mirrored Wall Street's performance with benchmark indexes in Australia, South Korea, Hong Kong, and Japan rising over 1%.
In China, consumer price inflation for July exceeded expectations, while the producer price index contracted at the same rate as the previous month, according to data released earlier.
The dollar remained near a one-week high as the yen weakened. U.S. Treasury yields held steady in Asian trading after falling across the curve on Thursday.
Oil prices stabilized following a three-day rebound amidst ongoing Middle Eastern tensions. Meanwhile, gold edged lower as traders reduced bets on aggressive rate cuts by the Federal Reserve in 2024.
U.S. stocks surged overnight, with the 10-year Treasury yield reaching 4%, as weekly jobless claims data came in below expectations, bolstering investor confidence in the U.S. economy.
The yen's depreciation against the dollar, spurred by the Bank of Japan's dovish stance, also contributed to a relief rally.
The S&P 500 soared 2.3%, marking its best single-day performance since November 2022. The tech-heavy Nasdaq Composite surged 2.9%, and the Dow Jones Industrial Average advanced 1.8%, recovering from a sharp sell-off earlier in the week.
European stocks experienced a mixed session on Thursday, recovering from early losses. The pan-European STOXX 600 ended marginally positive. Germany's DAX gained 0.4%, while France's CAC 40 and the U.K.'s FTSE 100 each declined by 0.3%.
