MUMBAI: Indian stocks opened lower on Friday, September 6, the last trading day of the week, weighed down by sluggish global trends and investors’ anticipation of key US jobs and payroll data.
At the opening bell, the BSE Sensex was down by 137 points or 0.17 per cent, settling at 82,063. Similarly, the Nifty 50 slipped 40 points or 0.16 per cent, trading at 25,105.
Among the top gainers in the Nifty 50 were LTIMindtree, Bajaj Finance, Bajaj Finserv, IndusInd Bank, and Wipro.
Meanwhile, major losers included SBI, Coal India, UltraTech Cement, ONGC, and NTPC.
The market sentiment could receive a boost from reports that Adani Enterprises has approved raising Rs800 crore via bonds and announced the early closure of its NCD public issue.
Additionally, the Maharashtra government has approved a $10 billion semiconductor project in collaboration with an Israeli firm and the Adani Group.
Experts’ view
A chief investment strategist from a leading brokerage expressed optimism about the market:
“The Indian economy remains robust, with improving macros, as indicated by a 47% growth in FDI during Q1 FY25 and a steady decline in Brent crude prices to below $73. Financial stability and economic growth momentum are strong. However, the elevated valuations are a concern, so investors should focus on buying fairly valued quality stocks during market dips.”
However, a prominent analyst took a more cautious stance, pointing out the shifting dynamics in the market:
“The stock market’s catalysts are evolving rapidly, surprising investors. Optimism around cooling US inflation has been replaced by concerns of a slowing US economy, especially after August’s private payroll numbers fell short of expectations, while jobless claims declined. With Wall Street reacting negatively and the Federal Reserve’s stance in question, all eyes are on the upcoming U.S. jobs report due on September 6.”
Asia-Pacific region
In the Asia-Pacific region, most markets also faced declines as investors reacted to Japan’s household spending data for July, which showed a modest 0.1 per cent increase in real terms compared to the previous year. Japan’s Nikkei 225 opened slightly lower, and the Topix dropped 0.42 per cent.
South Korea’s Kospi fell 0.8 per cent, while the Kosdaq lost 1.41 per cent. In contrast, Australia’s S&P/ASX 200 saw a small gain of 0.14 per cent. Meanwhile, Hong Kong’s Hang Seng index futures traded at 17,431, marginally lower than the HSI’s last close of 17,444.3. Mainland China’s CSI 300 futures also edged down slightly.
Elsewhere, MSCI’s global equities index dipped on Thursday as investors digested mixed economic data while waiting for the critical U.S. jobs report. Oil prices hovered near 14-month lows due to demand concerns, offsetting inventory drawdowns.
US data on Thursday showed private employers hired the fewest workers in three and a half years in August, with July figures also revised downward, hinting at a potential labor market slowdown. Additionally, the US services sector showed steady activity in August, with the ISM non-manufacturing PMI at 51.5, just above July’s 51.4.
US stocks
Despite the services data initially boosting optimism, US stock indexes lost ground as investors braced for Friday’s employment report.
On Wall Street, the Dow Jones Industrial Average fell 219.22 points or 0.54 per cent to 40,755.75, while the S&P 500 lost 16.66 points or 0.30 per cent to 5,503.41. However, the Nasdaq Composite gained 43.37 points or 0.25 per cent, closing at 17,127.66.
MSCI’s global stock gauge dropped 0.22 per cent to 813.26, marking its fourth consecutive day of declines. In Europe, the STOXX 600 index closed down 0.54 per cent.
Currency markets
In the currency markets, the dollar weakened as investors awaited the US payrolls report. US Treasury yields also fell, with the benchmark 10-year note yield down 3.9 basis points to 3.729 per cent, and the 30-year bond yield declining 4.7 basis points to 4.0207 per cent.
Oil down
In energy markets, oil prices remained relatively unchanged as concerns over US and Chinese demand and rising supply from Libya countered bullish inventory data and OPEC+ output delays. US crude settled at $69.15 per barrel, down 0.07 per cent, while Brent crude closed at $72.69 per barrel, marking its third consecutive daily decline.
Gold gains
Gold prices rose as both the US dollar and Treasury yields fell amid signs of a weakening labor market, prompting speculation about a potential large rate cut by the Federal Reserve.
Spot gold gained 0.85 per cent to $2,515.31 an ounce, while US gold futures increased 0.57 per cent to $2,507.60 an ounce.
