Indian indices open strong as markets await GDP data

MUMBAI: Indian benchmark indices BSE Sensex and Nifty 50, were trading higher after opening at record-high levels on Friday.

At 10:00 AM, the BSE Sensex was at 82,396, up 261 points, or 0.32 per cent, while the Nifty 50 was at 25,233, up by 81 points, or 0.33 per cent.

Global shares up

Global shares edged higher on Thursday, shrugging off investor disappointment at artificial intelligence powerhouse Nvidia’s results.

Meanwhile, in the domestic market, investors would have their eyes on the country’s GDP and infrastructure output data, which were scheduled to be released later in the afternoon today.

Wall Street mixed

That apart, in the US, the Dow reached a fresh record high close, and the S&P 500 finished just below its July record close, while the Nasdaq dropped. The Dow Jones Industrial Average rose 0.59 per cent to 41,335.05, the S&P 500 was flat at 5,591.96 and the Nasdaq Composite lost 0.23 per cent to close at 17,516.43.

European stocks rose 0.76 per cent after hitting a record high powered by technology shares. MSCI’s gauge of stocks across the globe rose 0.04 per cent to 827.62.

Asia-Pacific markets

Elsewhere, Asia-Pacific markets climbed on Friday after economic data from the US calmed recessionary fears, while investors also assessed a slew of data from Japan.

Inflation rate in Japan’s capital city of Tokyo rose to 2.6 per cent from June’s 2.2 per cent, hitting its highest since March.

The core inflation rate—which strips out prices of fresh food—rose 2.4 per cent, higher than the 2.2 per cent expected from a Reuters poll of economists.

Meanwhile, Japan’s Nikkei 225 was up marginally, and the Topix was 0.23 per cent higher after the data release in the country.

South Korea’s Kospi gained 0.55 per cent in early trade, while the small-cap Kosdaq was 0.74 per cent higher. Australia’s S&P/ASX 200 rose 0.46 per cent, and Hong Kong’s Hang Seng index futures were at 17,741, lower than the HSI’s last close of 17,786.32.

US economy

That apart, US Commerce Department data showed that the US economy grew at a 3 per cent annualized rate last quarter, indicating that the Federal Reserve would have room to begin cutting rates in September.

Initial jobless claims in the US fell to 231,000 from the prior week’s 232,000, but were slightly higher than the 230,000 estimated by Dow Jones.

In addition, the second-quarter gross domestic product growth was revised higher to 3 per cent from the initial 2.8 per cent rate.

Investors are also eyeing the personal consumption expenditure price index – which is the Fed’s preferred inflation measure and is due on Friday.

Gold shines

Gold climbed again and was just shy of notching another record high. Spot gold added 0.79 per cent to $2,522.08 an ounce. US gold futures settled 0.9 per cent higher at $2,560.3.

Oil gains

Oil prices gained as concerns over Libyan supplies helped offset a smaller than expected draw in US crude inventories, which tempered demand expectations. Brent crude futures settled up 1.64 per cent at $79.94 a barrel, while US crude rose 1.87 per cent at $75.91.