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Business News/ Markets / Stock Markets/  5 things to know before the stock market opens Friday
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5 things to know before the stock market opens Friday

On Friday, Indian shares will react to the US GDP data and weekly jobless claims, which could provide insights into the impact of the Federal Reserve's monetary policy on inflation and growth

This volatility in trade is expected to continue until the global banking system gets fully recovered from the turmoil.Premium
This volatility in trade is expected to continue until the global banking system gets fully recovered from the turmoil.

Benchmark indices Sensex and Nifty surged on Wednesday as easing worries about the global banking crisis brought back risk-taking and led to a broad-based gain among all sectors, while a rebound in the Adani Group stocks helped sentiment.

Sensex settled higher by 346 points while Nifty inched closer to the 17,100 level. On Friday, Indian shares will react to the US GDP data and weekly jobless claims, which could provide insights into the impact of the Federal Reserve's monetary policy on inflation and growth.

"On Friday, investors would react to UK GDP data while await release of US GDP data later that day, which could provide some cues towards Fed future course of action," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

“The home market is being impelled to stay non-sticky in both directions by the continuous instability in the international market. The domestic market's favourable ending was supported by a significant upswing in both the US and European markets," said Vinod Nair, Head of Research at Geojit Financial Services.

"This volatility is expected to continue until the global banking system gets fully recovered from the turmoil, along with a confirmation of the Fed's decision to pause rate hikes," Nair added.

Below are the 5 most important factors that will keep traders busy this Friday

Global markets

Global markets advanced on ebbing concerns that the global financial system might be cracking under the strain of interest rate hikes to cool inflation, believe analysts. Global equities were mostly up on Wednesday as easing concerns over the banking sector revived risk appetite, said Deepak Jasani, Head of Retail Research, HDFC Securities.

India infrastructure output

Investors will be eyeing infrastructure output data for the month of February, which will be out on 31 March. It comprises eight sectors including coal and electricity accounting for nearly 40 per cent of industrial output.

On the same day, investors will watch out for external debt fourth quarter data, current account fourth quarter data, and foreign exchange reserves data.

Nifty

Nifty remained volatile on the last day of the March F&O expiry. However, the overall trend has not changed as the benchmark Nifty settled below the resistance level of 17250. The critical short-term moving average, the 50 DMA (17571), is sitting well above the current value of the index. The on-going sideways trend may persist until there is a decisive breakout above 17250. A decisive breakout above 17250 may take the index for a ride to the 17500–17600 zone, where bears will be waiting. On the lower end, 16900 may continue to act as crucial support, where bulls have placed a tough guard.

US Q4 GDP

Gross domestic product increased at a revised 2.6 per cent annualised rate last quarter, the government said in its third estimate of fourth-quarter GDP. That was revised down from the 2.7 per cent pace reported last month, and reflected downgrades to exports and consumer spending growth estimates.

Weekly jobless claims

The number of Americans filing new claims for unemployment benefits rose moderately last week. Initial claims for state unemployment benefits increased 7,000 to a seasonally adjusted 198,000 for the week ended 25 March, the Labor Department said.

Claims have remained very low, bouncing around in a tight range despite high-profile layoffs in the technology industry.

UK GDP data

Investors would also be looking out for UK GDP data for the fourth quarter on Friday, a crucial stress point in gauging the state of the economy as it battles double digit inflation and surging interest rates.

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ABOUT THE AUTHOR
Meghna Sen
Business journalist tracking markets, companies, economy and crypto for Livemint. She has 6 years of experience with online and print publications. Email: meghnasen08@gmail.com
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Published: 30 Mar 2023, 08:57 PM IST
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