Indian Stock Market: Key Overnight Changes and Historical Context

The Indian stock market is anticipated to open with a flat to negative bias on Friday, influenced by mixed signals from global markets. This comes after a historic day where the Sensex closed above the 80,000-mark for the first time, reflecting a significant milestone in India’s financial history.

Historical Context: The Sensex, or the Bombay Stock Exchange Sensitive Index, is a benchmark index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE). It was first compiled in 1986 and has since been a barometer of the Indian economy. Crossing the 80,000-mark is a testament to the growth and resilience of the Indian economy over the decades.

Key Global Market Cues:

1. Asian Markets:

   • Asian markets mostly traded higher on Friday.
   • Japan’s Nikkei 225 and Topix indices hit new highs, with gains of 0.46% and 0.06%, respectively.
   • South Korea’s Kospi and Kosdaq indices also saw gains of 0.45% and 0.25%.
   • Hong Kong’s Hang Seng index futures indicated a lower opening.

2. Gift Nifty:

   • Gift Nifty was trading around the 24,360 level, a discount of nearly 17 points from the Nifty futures’ previous close, suggesting a muted start for Indian stock market indices.

3. Wall Street:

   • US stock markets were closed on Thursday for the Independence Day holiday.
   • US stock futures traded flat, with Nasdaq 100 futures down 0.1%, S&P 500 futures flat-to-lower, and Dow Jones Industrial Average futures up 0.05%.

4. Samsung Q2 Results:

   • Samsung Electronics estimated a significant rise in its second-quarter operating profit, driven by a surge in semiconductor prices amid the AI boom.
   • Preliminary operating profit was reported at 10.4 trillion won ($7.5 billion) for the June quarter, up from 670 billion won a year earlier.
   • Samsung’s share price increased by 1.7% during early morning trade in Seoul.

5. Japan Household Spending:

   • Japanese household spending unexpectedly fell by 1.8% in May from a year earlier, contrary to economists’ expectations of a 0.1% rise.

6. Oil Prices:

   • Crude oil prices traded near a two-month high, with both benchmarks heading for a fourth weekly advance.
   • Brent crude oil rose 0.07% to $87.49 a barrel, while US West Texas Intermediate (WTI) crude futures gained 0.16% to $84.01.

7. Gold Prices:

   • Gold prices traded higher on Friday and were on track for a weekly gain ahead of the US employment data.
   • Spot gold rose 0.1% to $2,358 and was up more than 1% for the week.
   • US gold futures were trading 0.1% lower at $2,366.30.

Summary:

• Sensex Milestone: Closed above 80,000 for the first time.
• Asian Markets: Mostly higher, with Japan hitting new highs.
• Gift Nifty: Indicates a muted start for Indian markets.
• US Markets: Closed for Independence Day; futures traded flat.
• Samsung Q2 Results: Significant profit rise due to semiconductor prices.
• Japan Household Spending: Unexpected decline in May.
• Oil Prices: Near two-month high, fourth weekly advance.
• Gold Prices: Higher, on track for a weekly gain.

This comprehensive overview provides students with a clear understanding of the current market dynamics and historical significance, aiding their preparation for competitive exams.