The Indian stock market is expected to open lower on Friday, November 13. The GIFT Nifty fell 70 points, suggesting a weak start for both the Sensex and Nifty 50 indices. The GIFT Nifty was trading around 25,270, down from the previous session's close of 25,299, according to reports from Moneycontrol and Livemint.
Key Details
Despite a rise in Asian markets, U.S. stocks closed lower on Thursday. This was mainly due to a drop in Nvidia shares, which fell 4.3% after CEO Jensen Huang's exit. The Dow Jones Industrial Average fell 189.40 points, or 0.36%. The S&P 500 and Nasdaq Composite also reported losses of 0.35% and 0.39%, respectively. Analysts noted that uncertainty surrounding Nvidia could hurt investor sentiment in the technology sector.
Background
The Indian equity markets had seen positive momentum recently. The Sensex gained 31.61 points, or 0.04%, to close at 81,911.01 on Thursday. This was supported by continued foreign fund inflows and a drop in crude oil prices, which traded below $92 per barrel. However, analysts suggest that the near-term outlook remains cautious. Market direction is likely to be influenced by crude oil prices, U.S. Treasury yields, and foreign portfolio flows. Ponmudi R, CEO of Enrich Money, said, "A sustained moderation in oil prices, coupled with continued FPI buying, could provide further support to the rally."
A weak opening for the Indian markets could lead to declines in key indices like the Sensex and Nifty 50. This is especially true if investor sentiment is affected by the ongoing Nvidia situation and fluctuations in global markets. A renewed rise in bond yields or tensions in the Gulf could also lead to profit-booking.
Watch for upcoming inflation data that could influence market direction and investor sentiment.
Based on reporting by: moneycontrol.com