Multiple Global and Domestic Factors Trigger Volatility in Indian Stock Market Overnight

Indian Stock Market Expected to Open Cautiously Amid Global Uncertainty

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Friday, following mixed global market cues. The Sensex crashed 852.49 points, or 1.09%, to close at 77,664.00 on Thursday, while the Nifty 50 settled 205.05 points, or 0.84%, lower at 24,173.05.

Asian markets traded mixed, while the US stock market ended lower, with the Wall Street benchmark indices retreating from record highs. Japan's Nikkei 225 gained 0.47%, and the Topix rose 0.30%, while South Korea's Kospi declined 0.23%. Hong Kong Hang Seng index futures indicated a lower opening.

Global Market Cues

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The Indian stock market witnessed a strong selloff for the second consecutive session, with select sectors and themes continuing to exhibit strength. Ajit Mishra, SVP, Research, Religare Broking Ltd, advised participants to remain focused on stock selection and manage trades accordingly.

In the US, the Dow Jones Industrial Average fell 180.70 points, or 0.37%, to 49,309.33, while the S&P 500 declined 29.60 points, or 0.41%, to 7,108.30. The Nasdaq Composite closed 219.06 points, or 0.89%, lower at 24,438.50. Key stocks, including Nvidia, Microsoft, IBM, Meta, and Tesla, also experienced significant losses.

Meanwhile, the US dollar was on track for its first weekly gain in three weeks, with the dollar index at 98.81. Crude oil prices rose over fears of renewed military escalation in the Middle East, with Brent crude futures rallying 1.17% to $106.3 a barrel.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Economic Indicators

• US jobless claims increased by 6,000 to a seasonally adjusted 214,000 for the week ended April 18.
• Infosys Q4 net profit rose 27.8% QoQ to ₹8,501 crore, while revenue increased 2% QoQ to ₹46,402 crore.
• Japan's core inflation slowed below the central bank's 2% target for a second straight month in March.

The Indian stock market is expected to remain cautious, with select sectors and themes continuing to exhibit strength. Investors should remain focused on stock selection and manage trades accordingly.