Wall Street Sees Positive Closure
The US stock market indices closed higher on Friday following a robust jobs report. The Dow Jones Industrial Average surged by 0.80% to 38,904.04 points, while the S&P 500 rallied by 1.11% to 5,204.34. Moreover, the Nasdaq Composite ended 1.24% higher at 16,248.52 points.
Asian Markets Start Cautiously
Asian shares began the week on a subdued note on Monday. The dollar firmed as investors weighed on when the U.S. Federal Reserve might commence rate cuts following another strong jobs report. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.26%, with Tokyo’s Nikkei rising by 1%. However, China mainland stocks reopened after extended holidays with a 0.5% decline in the blue-chip gauge. Meanwhile, Hong Kong’s Hang Seng Index rose by 0.33%.
Indian Markets Wrap Up Flat
On Friday, Indian stock market benchmarks, the Sensex and the Nifty 50, ended the day flat. The Reserve Bank of India (RBI) maintaining unchanged repo rates, as anticipated, influenced the sentiment. The Sensex rose marginally by 0.03% to close at 74,248.22 points, while the Nifty 50 settled flat at 22,513.70 points. The lackluster sentiment persisted due to geopolitical tensions, rising crude oil prices, and weak global cues.
RBI Keeps Repo Rates Unchanged
In its first bi-monthly policy meeting of FY25, the RBI’s Monetary Policy Committee decided to keep repo rates steady at 6.5% for the seventh consecutive time. The central bank maintained its policy stance as ‘withdrawal of accommodation’. Additionally, the RBI projected a real GDP growth forecast of 7% for the current fiscal year. The CPI inflation for FY25 is projected at 4.5%, with specific quarterly projections.
Gift Nifty Indicates Positive Start
At 8:20 am, Gift Nifty was trading higher by 30 points or 0.10% at 22,650, suggesting a favorable opening for the Indian markets. Oil prices witnessed a decline of over $1 a barrel on Monday, with Brent slipping below $90. The easing of Middle East tensions contributed to the drop in prices. Brent crude futures slipped by $1.70, or 1.9%, to $89.47 a barrel, while U.S. West Texas Intermediate crude stood at $85.29 a barrel, down by $1.62, or 1.9%.
Gold Prices Downtrend
Gold prices slipped more than 1% on Monday as the dollar and Treasury yields remained firm post a robust U.S. data release. Spot gold declined by 1.1% to $2,305.09 per ounce, while U.S. gold futures edged 0.9% lower to $2,324.20 per ounce.
Foreign Institutional Investors Activity
Foreign institutional investors (FIIs) net bought shares worth ₹1,659.27 crore, while domestic institutional investors (DIIs) sold shares worth ₹3,370.42 crore on April 5, according to provisional data from the NSE.
Despite a report indicating a robust U.S. labor market, the Indian rupee is expected to hold an upward bias on Monday. Non-deliverable forwards suggest that the rupee will open slightly higher or flat against the U.S. dollar compared to the previous session. The local currency recovered on Friday, supported by expectations that the central bank would prevent a sharp depreciation.
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