The strong rebound in the US market on Friday morning significantly boosted Asian markets. The Indian market, which ended on Thursday in losses, is now hopeful. The reduction in the selling intensity of foreign investors has sparked optimism about their return.
The US Federal Reserve Board (Fed) will announce its decision this Thursday. While there may be no immediate rate cuts, the market anticipates reductions in April and June. Interest rate decisions from the Bank of England and the Bank of Japan are also expected this week.
As tensions in West Asia escalated again, crude oil prices rose by 1.5%, with expectations of further increases. Uncertainty surrounding Donald Trump's trade war and its direction continues to worry the markets.
In the derivatives market, the GIFT Nifty closed at 22,554.50. This morning, it initially climbed to 22,605 before dipping slightly. This suggests that the Indian market may start the day with notable gains.
European markets ended Friday on a strong note. The German parliament agreed to remove spending constraints, paving the way for a significant increase in defence expenditure.
Although US markets were significantly down on Thursday, they surged on Friday. However, the week still ended in losses.
On Friday, the Dow Jones index rose by 674.62 points (1.66%) to close at 41,488.19. The S&P 500 gained 117.42 points (2.13%) to end at 5638.94, while the Nasdaq Composite climbed 451.08 points (2.61%) to close at 17,754.09. Nvidia and Tesla surged by 5% and 4%, respectively.
The Dow ended the week with a 3.1% decline, while the other two indices lost 2% each. This was the Dow's biggest weekly loss since 2023.
US futures are trading lower this morning. The Dow is down by 0.43%, the S&P by 0.53%, and the Nasdaq by 0.62%. Concerns over Trump's trade policies and other measures leading to a recession and high inflation in the US are intensifying. The University of Michigan’s consumer confidence survey found that 57% of respondents had a negative outlook.
Asian markets opened higher today. Japan’s Nikkei rose by 1.20%, while South Korea’s Kospi climbed 1.25%. China announced new measures to boost domestic consumption, lifting the Hang Seng and Chinese indices.
The Indian market declined again on Thursday. While the main indices lost nearly 0.3%, midcaps fell by three-quarters of a percent, and smallcaps dropped by 1%. The realty, auto, metal, media, IT, and consumer durables sectors suffered significant losses.
The Nifty fell by 73.30 points (0.33%) to close at 22,397.20. The Sensex dropped 200.85 points (0.27%) to settle at 73,828.91. However, the Bank Nifty inched up by 3.75 points (0.01%) to 48,060.40. The mid cap index fell 0.75% to 48,125.10, while the small cap index declined 0.98% to close at 14,897.35.
On Thursday, foreign investors made a net sale of ₹792.90 crore in the cash market, while domestic funds and financial institutions collectively made net purchases worth ₹1723.82 crore. Many analysts believe the period of intense selling by foreign investors is coming to an end, as the selling pressure has significantly reduced in recent days.
The breadth of the market remained negative, with declines outpacing advances. On the BSE, 1,424 stocks advanced, while 2,561 declined. On the NSE, 975 stocks rose, whereas 1,839 fell.
The market sentiment remained bearish, with the Nifty staying between 22,300 and 22,700. If it breaches 22,700, it could advance towards 23,000. Conversely, a dip below 22,300 could lead to a fall to 21,800. Today, support is expected at 22,370 and 22,265, while resistance may be seen at 22,515 and 22,620.
The Reserve Bank recently stated that there is no need to worry about the safety of IndusInd Bank. However, the market remains sceptical. Some Indian brokerage research reports suggest that the bank's interest income calculations have been inaccurate for years. There are also doubts about its derivative trading figures. External auditors are currently scrutinising the bank’s accounts, and brokerage reports indicate the possibility of a major fraud.
Gold continues its record-breaking rally. On Friday, the holiday price per ounce reached $3017.10, while the spot price touched $3005.04. It eventually closed at $2985.50, down $4 from Thursday. This morning, the price has risen to $2992 per ounce, with expectations of further gains.
In Kerala, gold prices increased by ₹440 per sovereign on Thursday, reaching ₹64,960. On Friday, it surged by ₹880 to hit a record ₹65,840. However, it fell by ₹80 on Saturday to ₹65,760. If the rupee weakens further, prices could rise again today.
Silver prices soared to $33.79 per ounce. The dollar index rose slightly to close at 103.72 and is trading at 103.75 this morning.
The rupee ended Thursday with strong gains but fell by 21 paise to close at 87.00 per US dollar after fluctuations. The Chinese yuan remains at 7.24 per US dollar.
US bond yields fell, boosting returns. The yield on 10-year Treasury bonds stood at 4.304%.
The resumption of US bombing against the Houthis and worsening relations with Iran pushed crude oil prices higher. Brent crude rose by 1.70% this morning to $71.75 per barrel. WTI crude climbed to $68.35, while UAE’s Murban crude reached $72.34.
Cryptocurrencies are in decline. Bitcoin has fallen to $82,900, while Ethereum is nearing $1,900.
Most industrial metals closed higher on Friday, except aluminium. Copper rose 0.58% to $9,759 per tonne, while aluminium fell 0.93% to $2,678.04. Nickel, lead, zinc, and tin climbed 1.36%, 0.82%, 1.78%, and 6.74%, respectively.
Market indicators (March 13):
Sensex 30: 73,828.91 (-0.27%)Nifty 50: 22,397.20 (-0.33%)Bank Nifty: 48,060.40 (-0.01%)Mid Cap 100: 48,125.10 (-0.75%)Small Cap 100: 14,897.35 (-0.98%)Dow Jones: 40,813.60 (-1.30%)S&P 500: 5521.52 (-1.39%)Nasdaq: 17,303.00 (-1.96%)Dollar ($): ₹87.00 (-₹0.21)Gold (ounce): $2989.50 (+$54.70)Gold (sovereign): ₹64,960 (+₹440)Brent crude oil: $70.15 (-$0.90)
