Expectations of a Strong Start in Indian Stock Market on September 4

NEW DELHI। The Indian stock market is expected to start positively on September 4. Gift Nifty is trading around 24,044 with a gain of about 44 points. Sensex and Nifty may open higher today, but the market direction will depend on the US and Asian markets, crude oil prices, and interest rates.

There was strong buying in the US stock market on Thursday. The Dow Jones rose 1.18 percent to close at 53,686.11. Meanwhile, the S&P 500 gained 1.06 percent and the Nasdaq rose 1.40 percent. Buying in shares of major tech companies supported the US market. Nvidia closed up about 1.80 percent, Microsoft 2.68 percent, Apple 1 percent, Amazon 1.54 percent, Meta 3.01 percent, and Alphabet 1.59 percent higher.

A major reason for this rally was comments from US Federal Reserve Governor Christopher Waller. He indicated that if inflation continues to decline, it might be better to keep interest rates at the current level. This reduced concerns about interest rates in the market and increased investor confidence.

On Friday morning, Indian markets are not receiving completely one-sided signals from Asian markets. South Korea's KOSPI was trading up about 1.23 percent and Japan's Nikkei was up 0.65 percent. Meanwhile, Hong Kong's Hang Seng Index was showing weak signals and the Shanghai Index was also in the red. The mixed picture in Asian markets may affect the Indian market.

Gift Nifty gives an early indication for the Indian market. On Friday morning, it was around the 24,044 level, about 44 points above the previous close of Nifty futures. This suggests that Sensex and Nifty may start higher. However, it is not correct to determine the entire market direction based only on the initial rise. The impact of global signals and domestic factors may be seen during trading.

After the previous rise, gold prices showed some stability on Friday. Spot gold rose about 0.1 percent to around $4,478 per ounce. Silver also saw a slight increase of about 0.1 percent.

The biggest concerns for the market are high crude oil prices and geo-political tensions. Today Brent crude is trading up 0.47 percent at $95.99 per barrel. The rise in crude oil prices is important for India as the country imports a large part of its needs. Expensive oil can increase inflation and put pressure on the country's import bill.

Additionally, the market will keep an eye on SEBI's review of the settlement price of derivative contracts. Since the start of the closing auction session, SEBI has been reviewing feedback from market participants regarding the process of determining the settlement price.

Some companies are also expected to announce their quarterly results on Friday. Dhoot Transmission will release its quarterly earnings today, while Molbio Diagnostics will declare its quarterly results on September 5.