Stock Market Today: Top 10 things to know before the market opens

The S&P 500 hit a one-month high as US jobless claims rose, fueling speculation of Fed rate cuts

The benchmark Sensex and Nifty indices are likely to open on a strong note on May 10 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 70 points.

On 10 May, India's benchmark indices took a hit, with NSE Nifty 50 dropping below 22,000 and BSE Sensex plunging over 1,000 points, both marking over a 1 percent intraday fall. Sensex closed 1,062 points at 72,404, and Nifty 50 down 335 points at 21,967. This marks the fifth consecutive day of decline.

Nifty dropped below 100-day moving average since November 12 due to election uncertainties and concerns over PM Narendra Modi's expected smaller majority, pushing the benchmark down 3 percent from its record high. Weak Q4 results and rising crude prices add to the downward pressure, analysts noted.

Market witnesses widespread decline with frontline indices dropping 1-2 percent, while Midcap Index plunges by 1,000 points. Weakness persists in the midcap segment, favoring declines in market breadth. Except Nifty Auto, all sectors declined. Nifty Oil & Gas was the top loser, falling by 3.2 percent. Nifty Metal and FMCG indices dropped 2.9 percent and 2.5 percent respectively. Nifty Pharma and Realty indices fell 2 percent each. Among gainers, Nifty Auto rose by 0.8 percent.

Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.

Gift Nifty

Trends in the GIFT Nifty indicate a positive start for the broader index in India, with a gain of 70 points or 0.32 percent. The Nifty futures were trading around the 22,159 level.

Asian markets

Asian shares rose on Friday, buoyed by positive Wall Street performance driven by strong jobs data, reinforcing expectations for US rate cuts. Stocks in Japan, South Korea, and Australia gained, along with Hong Kong futures. US contracts also saw an uptick, with the S&P 500 nearing its record high and the Nasdaq 100 index edging higher. Treasury yields dipped, supported by a successful US bond sale, while Australian and New Zealand government bonds also saw slight gains.

US Markets

The S&P 500 hit a one-month high as US jobless claims rose, fueling speculation of Fed rate cuts. The bond rally continued following a successful $25 billion 30-year debt sale. Megacaps like Amazon rose, Nvidia fell. The dollar weakened on lower Treasury yields, jobless claims surged, and the pound saw modest gains. Bank of England hints at future rate cuts, keeps rates steady at 5.25 percent. Mexico maintains a rate of 11 percent. Crude futures stabilized, precious metals surged, Bitcoin above $62,000. European and Canadian stocks also advanced.

Crude

Oil poised for third consecutive day of gains, boosting weekly performance on US jobs data hinting at Fed rate cuts, supporting risk assets. Brent surpasses $84/barrel, holding above 100-day moving average, while West Texas Intermediate nears $80. Increased US jobless claims reinforce the case for looser monetary policy, weakening dollar and bolstering commodity appeal. Despite muted price action, crude maintains an upward trend this year, backed by OPEC+ cuts, robust global demand, and ongoing Middle East tensions. OPEC+ to convene next month to discuss second-half output.

Gold

Gold inches up in early Asian trading, bolstered by expectations of Fed rate cuts following a surge in initial jobless claims, reaching a nine-month high. Analysts anticipate upcoming inflation data to provide additional clarity on the state of the US economy.

Voter turnout

As India's general election reaches halfway, declining voter turnout sparks concerns about disengagement in the world's largest poll. Analysts note various reasons for the drop, but it doesn't necessarily favor any party. Nonetheless, the decrease raises questions about the ruling Bharatiya Janata Party's support, causing uncertainty in financial markets. Phase three of the election saw 172 million voters, with a turnout of 65.7 percent, lower than in previous phases and the last general election in 2019.

India Inclusion

JPMorgan Chase & Co. is on track to include India in its emerging market debt index from June with most of its clients ready to trade, Bloomberg reported. Despite some operational challenges, such as documentation processes, JPMorgan acknowledges the government's reforms. India's inclusion in global indexes has been hindered by such complexities. JPMorgan anticipates foreign inflows of $20-25 billion, estimating its emerging-market bond gauge currently manages $216 billion in assets.

FII & DII Flow

FIIs sold shares worth Rs 6,994.86 crore. DIIs pumped in Rs 5,642.53 crore worth of stocks on May 9

Stocks under NSE F&O ban

Aditya Birla Fashion & Retail, Balrampur Chini Mills, Canara Bank, GMR Airports Infrastructure, Vodafone Idea, Piramal Enterprises, Punjab National Bank, SAIL, Zee Entertainment Enterprises

Results Today

Tata Motors, Eicher Motors, Cipla, Union Bank of India, Bank of Baroda, Bank of India, ABB India, Finolex Industries, Kalyan Jewellers, Dr Lal PathLabs, Thermax

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