There is no sign of a solution to the Strait of Hormuz issue. Crude oil is moving towards $90 a barrel. Concerns over higher interest rates are also returning. Markets are heading into the weekend facing several layers of uncertainty.
In derivatives trading at GIFT City, GIFT Nifty closed at 24,210.50 on Thursday night. It climbed to 24,359 this morning before falling to 24,260. This indicates that the Indian market could begin today’s session with a small loss.
Strong results from Nvidia and several software services companies lifted the technology sector. Nvidia surged 8.7%.
Chip company Salesforce gained 22%, while cybersecurity companies Okta jumped 28%, CrowdStrike 20.5% and Palo Alto 13%.
The market is increasingly convinced that the artificial intelligence boom will continue. The Nasdaq Composite gained 1.57%.
US markets showed little panic even as crude oil prices rose again.
Federal Reserve Chairman Kevin Warsh’s speech tonight at the meeting of central bank leaders in Jackson Hole will be crucial for markets. Warsh is expected to explain the Federal Reserve’s objectives on interest rates.
The Dow Jones Industrial Average rose 105.56 points, or 0.20%, to close at 53,569.44 on Thursday.
The S&P 500 advanced 55.29 points, or 0.72%, to end at 7,730.99. The Nasdaq Composite gained 411.16 points, or 1.57%, to close at 26,541.35.
US futures are trading in different directions today.
Dow futures are up 43 points, or 0.08%. S&P 500 futures are down four points, or 0.05%, while Nasdaq futures have declined 38 points, or 0.13%.
In the American Depositary Receipt market in New York, HDFC Bank fell 3.06% during regular trading on Thursday before gaining 0.16% in after-hours trade to close at $22.50.
ICICI Bank declined 0.96% during the regular session and remained unchanged in after-hours trading at $29.86.
Infosys gained 1.80% during regular trading before falling 0.42% in after-hours trade to close at $11.85.
Wipro declined 1.64% during the regular session before gaining 0.44% in after-hours trading to close at $1.808.
Concerns over tightening liquidity pushed bank stocks lower and sent most European markets into losses yesterday.
France’s benchmark index fell 1.68%, the Euro Stoxx declined 0.73% and the FTSE dropped 0.79%. Germany’s benchmark index gained 0.31%.
Italian bank UniCredit’s attempt to acquire German lender Commerzbank is moving closer to success. UniCredit already holds a 48% stake in Commerzbank.
The next stage of the takeover process is expected to begin after UniCredit chief executive Andrea Orcel meets German Finance Minister Lars Klingbeil on 14 September.
The German government, which had previously opposed the acquisition, is understood to have softened its position considerably.
Asian markets are mostly higher today.
Japan’s Nikkei gained 0.70%, while the Australian market advanced 0.40%.
South Korea’s Kospi declined 0.88%. Hong Kong, Taiwan and Shanghai are trading higher.
Yesterday’s Indian market fully demonstrated the uncertainty created by the Closing Auction Session, or CAS.
The Sensex fell by more than 1,000 points in the final minutes. The eventual closing level had little connection with the market’s earlier movement.
SEBI Chairman Tuhin Kanta Pandey, however, said CAS would not be withdrawn. The new system is creating difficulties for individual investors and smaller brokerages.
Foreign investors were sellers yesterday, recording net sales of ₹298.26 crore in the cash market. Domestic funds made net purchases of ₹4,977.17 crore.
The Sensex fell 539.34 points, or 0.70%, to close at 76,933.59 on Thursday.
The Nifty declined 116.90 points, or 0.48%, to end at 24,090.85.
The Bank Nifty dropped 273.80 points, or 0.47%, to close at 57,509.95.
The Nifty Midcap 100 fell 65.75 points, or 0.10%, to end at 64,035.45.
The Nifty Smallcap 100 declined 26.65 points, or 0.13%, to close at 20,040.65.
More stocks declined in the broader market. On the BSE, 1,779 stocks advanced and 2,557 declined. On the NSE, 1,325 stocks rose while 2,149 fell.
The Reserve Bank of India’s failure to clarify its position on extending the tenure of HDFC Bank’s chief executive has raised several questions. HDFC Bank shares ended 1.75% lower yesterday.
A National Company Law Tribunal ruling under which Zee owner Subhash Chandra can avoid liabilities of ₹22,000 crore by paying ₹6.5 crore could result in large losses for HDFC Bank and LIC Housing Finance. Further clarity on the ruling is awaited. HDFC Bank is seeking to challenge the ruling.
Reports that India could sharply reduce its gold import duty sent gold and silver exchange-traded funds lower yesterday.
The reports said the duty could be cut from 15% to 6%. It had been raised from 6% to 15% in mid-May.
The government wanted to reduce gold and silver imports and support the rupee. Like similar measures in the past, this too failed. Imports did not decline, smuggling increased and the rupee did not strengthen.
Gold fell by ₹4,200 per 10 grams on the Multi Commodity Exchange yesterday morning but later recovered to close with a marginal gain.
In Kerala, jewellery gold fell by ₹2,280 per sovereign.
Shares of gold-loan companies declined. Manappuram Finance fell 4.84%, Muthoot Finance 4.14% and IIFL 2.76%.
Concerns that fewer job losses and persistently high prices could push the US Federal Reserve towards higher interest rates are again weighing on gold.
Gold has been unable to move decisively above the $4,600 level.
It gained $7.70 yesterday to close at $4,602.60 an ounce. The price fell towards $4,575 this morning.
In Kerala, 22-carat gold fell by ₹2,280 per sovereign in two stages yesterday to ₹1,17,800.
Silver edged higher on Thursday to close at $69.36 an ounce. It declined marginally this morning.
Platinum stood at $1,838, palladium at $1,325 and rhodium at $8,400.
International rubber prices declined again, while prices remained unchanged in Kerala.
In Bangkok, RSS-1 was quoted at $284.40 per quintal and RSS-3 at $280.90 per quintal.
In Kerala, the price remained at ₹27,400.
Major industrial metals edged lower on Thursday.
Copper fell 0.25% to $14,488.85. Aluminium declined 0.12% to $3,235.03.
Nickel and tin also fell, while zinc and lead advanced.
Cocoa prices surged 6.88% to close at $6,232 a tonne, the highest level since 9 July.
The rise was driven by expectations of lower cocoa availability in the 2026-27 season.
Ivory Coast and Ghana have said the season will begin a month earlier, in September. However, there is no indication that arrivals will increase.
Arabica coffee fell 3.88% to $3.10 a pound. There are concerns that El Niño could reduce production.
Palm oil, which climbed above 5,000 Malaysian ringgit a tonne last weekend, has fallen to 4,816 ringgit.
The US Dollar Index fluctuated on Thursday before closing marginally lower at 99.16. It fell to 99.12 this morning.
The euro rose to $1.1652 and the pound to $1.3593.
The Japanese yen stood at 159.35 to the dollar. The Chinese yuan remained at 6.72 to the dollar.
The yield on the US 10-year Treasury note reached 4.672% on Thursday.
The rupee ended lower on Thursday.
The dollar gained 13 paise to close at ₹95.54.
In the offshore forward market, the dollar was quoted at ₹95.54 this morning.
The Chinese yuan remained at ₹14.19. The euro rose to ₹111.25.
Crude oil gained 2% yesterday to move close to $90 a barrel.
The rise followed a US statement that no talks were taking place with Iran.
Brent crude closed at $89.70 a barrel on Thursday. It eased to $89.63 this morning.
West Texas Intermediate crude stood at $83.44.
Cryptocurrencies have resumed their advance.
Bitcoin gained around 3.5% yesterday to move above $81,100.
Ether rose above $2,525 today, while Solana moved above $109.