Ahead of Market: 10 things that will decide stock market action on Monday
The Indian stock market extended losses for the fifth consecutive session, with Sensex and Nifty tumbling more than 1% intraday before paring most of the
The Indian stock market extended losses for the fifth consecutive session, with Sensex and Nifty tumbling more than 1% intraday before paring most of the losses and closing 0.4% lower each on Friday, as oil prices above $100 per barrel, FII selling and other factors spooked investors.Sensex fell 332 points to close at 76,059.77, while Nifty 50 declined 102 points to end the session at the 23,767 mark during Friday's trading session. Broader markets also saw a sharp recovery after a crash in the morning trading hours, with the Nifty Midcap 50 index closing in the green.Here's how analysts read the market pulseMarket sentiment is likely to remain under pressure in the near term, as sustained oil prices in a higher range could begin to adversely impact key macroeconomic indicators and growth dynamics, said Vinod Nair, Head of Research at Geojit Investments. He noted that the US 10-year yield has climbed to a 52-week high despite crude oil trading well below its crisis-era peak, reflecting the bond market's concerns over energy-led inflation risks, resilient labour market conditions, and a persistently hawkish Fed."These factors have pushed the implied probability of a rate hike in September. Washington’s new tariffs on imports added another headwind for export-driven economies, with technology-heavy markets having been hit the most, as higher rates weigh on growth and investors are increasingly seeking to diversify their concentrated exposure to other emerging market opportunities.
Bank Nifty outperformed, supported by favourable valuations and credit growth outlooks," he added.US stocksThe Nasdaq declined on Friday as a sell-off in chip stocks weighed on sentiment, driven by growing investor concerns over the scale of spending on artificial intelligence ahead of key megacap earnings. The S&P 500 ended largely flat, with weakness in the technology index offsetting broader support from lower oil prices despite ongoing Middle East tensions.Investor enthusiasm for Big Tech also softened after Alphabet signalled plans to increase capital expenditure, intensifying worries about sustained cash burn in AI. Market participants are now cautious as they await earnings from Microsoft, Amazon, Meta and Apple, with rising scrutiny on the returns from heavy AI investments.European marketsEuropean markets closed higher, with the pan-European STOXX 600 rising 0.8%, recovering from the previous session’s decline and marking a second straight week of gains. The uptick was supported by easing oil prices, which provided some relief to equities.However, sentiment remained cautious as bond yields stayed elevated amid inflation concerns. The European Central Bank kept rates unchanged, while markets continue to price in a strong probability of a rate hike in September, even as economic data from Germany and France showed signs of improvement.Tech view"The Nifty slipped from the consolidation on the daily chart on Thursday, with follow-up selling taking the index to 23,600 on Friday.
The BriefWire