Stock markets, an Indian business magnate says, are like weather. We have to endure it regardless of what it offers.
Indian markets tend to get overheated quickly, calling for immediate corrections, or sink in their own weight.
In recent times, the Indian stock market has been coping with losses, but there’s something to cheer about.
According to The Mint, a business portal, Sensex and Nifty 50, may have a respite from losses and open flat-to-positive tracking gains in global markets.
A caveat: Crude oil prices dropped more than $5 and in general a melancholic macroeconomic picture prevailed.
It has been reported that “the Asian markets traded higher while the US stock market ended in the green overnight after the dollar eased and treasury yields retreated from multi-year higher highs.”
However, even amid steady foreign capital outflow, there are concerns over inflation and a hike in interest rates.
The report added the domestic benchmark indices extended losses for a second consecutive session as the Nifty 50 closed below 19,500 levels.
“We expect weakness to persist in the market in the coming weeks till the headwinds recede. The Q2 earnings season will start next week and is expected to maintain the growth momentum of previous quarters. Even the pre-quarterly updates released so far indicate healthy traction,” said Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services Ltd, told the portal.
Meanwhile, Asian markets were upbeat on Thursday, trading higher, following overnight gains on Wall Street. The US dollar and Treasury yields were nothing to rave home about following much weaker-than-expected jobs data.
Japan’s Nikkei 225 increased 0.53% and the Topix rose 0.67%. South Korea’s Kospi added 0.78%, while the Kosdaq rallied 1.41%, the report mentioned.
S&P/ASX 200 was up 0.19%.
Gift Nifty was trading around 19,491 compared to Nifty futures’ previous close of 19,478.
The US stock market indices too ended on a high note on Wednesday; Treasury yields eased off of 16-year highs.
The Dow Jones Industrial Average went up 127.17 points, or 0.39%, to 33,129.55, and the S&P 500 increased 34.3 points, or 0.81%, to 4,263.75. The Nasdaq Composite finished 176.54 points, or 1.35%, higher at 13,236.01, the report said.
The yield on 10-year treasury notes touched 4.884%, the highest since August 2007, while 30-year treasury yields rose above 5%.