Indices poised for tepid start

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could fall 8 points at the opening bell.

Market participants will focus on the HSBC Services PMI (final) numbers for April, due on May 6.

The third phase of voting for the Lok Sabha elections 2024 will be held on 7 May 2024. In the third phase, voting will take place in 96 LS constituencies from 12 states, including Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Uttar Pradesh, and West Bengal. The BJP aims for a third consecutive term, while the opposition, including the Congress, has formed the Indian National Developmental Inclusive Alliance (INDIA) bloc to oppose PM Modi's re-election. These elections span over seven phases from April 19 to June 1, and the results will be announced on June 4.

 

Global markets:

Overseas, Asian stocks are trading higher on Monday as a softer-than-expected U.S. jobs report fueled hopes that the Federal Reserve could start cutting rates soon. Investors, meanwhile, awaited the Reserve Bank of Australias rate decision on Tuesday and Chinas April trade data on Thursday. Japan and South Koreas markets are closed for a public holiday.

U.S. stocks closed sharply higher Friday, as Treasury yields fell after a softer-than-anticipated April jobs report.

The Berkshire Annual Meeting 2024 on Saturday proceeded in Omaha with Warren Buffett, Greg Abel, and Ajit Jain fielding shareholder queries. Buffett spoke on a variety of issues, including the India opportunity, stock market outlook, US dollar, AI, Apple stake cuts, global investments and more.

The U.S. economy added fewer jobs than expected in April while the unemployment rate rose. Nonfarm payrolls increased by 175,000 on the month. The unemployment rate ticked higher to 3.9%, compared to 3.8% in the prior month, according to the Bureau of Labor Statistics.

Domestic markets:

Back home, the key benchmarks indices ended with substantial losses on Friday. The barometer index, the S&P BSE Sensex, tumbled 732.96 points or 0.98% to 73,878.15. The Nifty 50 index fell 172.35 points or 0.76% to 22,475.85.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,391.98 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 690.52 crore in the Indian equity market on 3 May, provisional data showed.

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