The Indian stock market is likely to open lower on Friday, 11 September, as Gift Nifty points to a weak start and a sharp rise in crude oil prices continues to weigh on overnight investor sentiment.

Asian stocks and bonds declined after a surge in oil prices triggered a selloff on Wall Street. Fresh inflation data also strengthened expectations of an imminent Federal Reserve rate hike.

The Sensex and Nifty 50 broke a three-session losing streak on Thursday, ending marginally higher as late-session stock-specific buying helped the benchmark indices recover despite a cautious market mood.

Domestic Market Recap

On Thursday, Indian indices ended green:

• Sensex gained by 138.36 points (0.19%) to close at 74,902.59.
• Nifty 50 moved up by 4.30 points (0.20%) to settle at 23,477.80.

Gift Nifty

Gift Nifty was trading near 23,362, around 122 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

• The Dow Jones Industrial Average slumped by 316.56 points (0.60%) to close at 52,064.10.
• S&P 500 was down by 44.66 points (0.58%), ending at 7.591.70.
• The Nasdaq Composite was lower by 171.62 points (0.65%), finishing at 26,081.72.

Crude Oil Prices

• Brent crude gained by 1.05% to $108.68/barrel
• US West Texas Intermediate (WTI) crude was trading 1.00% higher at $103.45/barrel

Overnight Major Global Events Driving Sentiment

1. RBI steps in as rupee hits record-low: The RBI’s intervention in the foreign exchange market is one of the key domestic developments today. The rupee weakened to around ₹95.79 per dollar before recovering slightly, prompting the RBI to reportedly direct state-run banks to sell dollars to limit the currency’s fall.
2. Crude oil crosses $108: The immediate trigger behind today’s sell-off is the sharp jump in crude oil. Brent has moved above $108 a barrel, with the latest escalation in the Middle East raising concerns about disruptions to oil supply and shipping routes. This is more than just a geopolitical headline for India. Sustained crude prices above $100 can affect CPI inflation, the current account deficit, the rupee, corporate margins and the RBI’s policy decisions.

The future of investing is here!
Tradz by EquityPandit leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app todayand 10x your trading & investing journey!