Indian Markets Likely to Open Gap-down Amid India-Pakistan Tensions; Global Cues Mixed
On May 08, Foreign Institutional Investors (FIIs) were net buyers, purchasing Rs 2,007.96 crore worth of shares. Domestic Institutional Investors (DIIs) sold shares worth Rs 596.25 crore during the same period.
Pre-Market Update at 8:00 AM: Indian equity benchmarks Sensex and Nifty 50 are expected to start Friday’s session on a weaker note, as geopolitical tensions escalate between India and Pakistan. This comes as Asian equities show a mixed performance and Wall Street ended on a positive note following a trade agreement between the US and the UK.
On Thursday, domestic markets slipped towards the end of the trading day due to rising border tensions. Reports confirmed that India targeted Pakistani air defence systems at several locations, leading to investor caution. The Sensex declined 411.97 points (0.51 per cent) to settle at 80,334.81, while the Nifty 50 dropped 140.60 points (0.58 per cent) to close at 24,273.80.
Asian indices posted a mixed performance on Friday ahead of China’s trade data and unresolved US-China trade concerns. Japan’s Nikkei 225 rose by 1.17 per cent, Topix gained 1.06 per cent, while South Korea’s Kospi edged up 0.3 per cent. However, the Kosdaq slipped 0.59 per cent.
The Gift Nifty was trading around 23,976 about 295 points below Thursday's Nifty futures close hinting at a gap-down opening for Indian equities.
American indices gained after a limited trade deal was reached between the US and the UK. The Dow Jones advanced 254.48 points (0.62 per cent) to 41,368.45, the S&P 500 rose 32.66 points (0.58 per cent) to 5,663.94, and the Nasdaq climbed 189.98 points (1.07 per cent) to 17,928.14.
India-Pakistan border tensions intensified after Pakistani-origin drones and missiles targeted Jammu, Udhampur, and Pathankot. The Indian military confirmed it had neutralized these threats using a mix of kinetic and non-kinetic methods. Additionally, two Pakistani drones were reportedly shot down in J&K’s Naushera sector, with artillery exchanges continuing in the area.
Other Key Updates
- US-UK Trade Pact: The newly announced trade agreement retains a 10 per cent US tariff on British exports while modestly increasing agricultural trade and reducing auto duties.
- US Jobless Claims: New jobless claims fell to 228,000—lower than the 230,000 expected—indicating resilience in the labour market.
- BoE Rate Cut: The Bank of England reduced interest rates to 4.25 per cent. However, a split vote among policymakers suggests no immediate rush for more cuts.
- Gold and Crude: Spot gold edged up 0.1 per cent to USD 3,309.39/oz, while US gold futures rose 0.3 per cent. Brent crude climbed 0.17 per cent to USD 62.95 per barrel, and WTI crude followed closely at USD 60.01.
- Currency Watch: The US dollar gained across major currencies post the US-UK deal. The dollar index rose to 100.66, with the euro and pound slipping and the yen weakening to 145.92 per dollar.
On May 08, Foreign Institutional Investors (FIIs) were net buyers, purchasing Rs 2,007.96 crore worth of shares. Domestic Institutional Investors (DIIs) sold shares worth Rs 596.25 crore during the same period.
For today, CDSL, RBL Bank and Mannapuram Finance continue to remain under the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.