The Indian equity markets are expected to open flat today, Friday, May 3, as suggested by Gift Nifty trends and conflicting global cues. Although Wall Street rallied overnight, there is caution surrounding trade talks, economic data, and commodity movement.
Here are 8 important developments that may influence market direction today:
1. Gift Nifty Suggests Flat Start
Gift Nifty was trading at 24,425, a modest 7-point premium over the Nifty futures’ previous close, suggesting a muted start for benchmark indices.
2. Wall Street Rally Supports Sentiment
- Dow Jones: +83.60 points (+0.21%)
- S&P 500: +35.08 points (+0.63%)
- Nasdaq: +264.40 points (+1.52%)
Mega-cap tech earnings from Microsoft (+7.6%) and Meta (+4.2%) lifted US indices. Apple also edged higher, while Amazon and Qualcomm saw declines.
3. Asian Markets Mixed
- Japan's Nikkei: +1.24%
- Topix: +0.67%
- South Korea Kospi: Flat
- Kosdaq: +0.60%
Hang Seng Futures: Signal soft open
Asian sentiment firmed up on easing US-China tensions, although some caution remains in regional markets.
4. India Market Recap
Markets were closed on May 1 for Maharashtra Day. On April 30:
- Sensex: -46.14 points (80,242.24)
- Nifty 50: -1.75 points (24,334.20)
Both indices remained above key support despite small losses.
5. US-China Trade Developments
China sent signals of welcoming the resumption of trade negotiations. Its commerce ministry called for the US to reconsider unilateral tariffs, giving a boost to the hopes of stronger bilateral relations.
6. Mixed US Economic Data
Manufacturing PMI: Fell to 48.7 in April — a 5-month low.
Jobless Claims: Increased to 241,000, more than forecasted (224,000), reflecting softness in labor markets.
These figures are likely to impact global investor mood heading into the weekend.
7. Gold Prices Decline on Easing Concerns
Gold steadied at $3,240.34/oz, but is on track for a 2% weekly fall — worst since February. Safe-haven demand eased as fears of trade retreated.
8. US Dollar Rises
The dollar index is on course for a 0.5% weekly increase, trading at:
- USD/JPY: 145.53
- EUR/USD: $1.1290 (near 3-week low)
Dollar strength has the potential to impact foreign investment inflows into emerging economies like India.
Market Outlook
- Nifty 50 Resistance: 24,400
- Support Levels: 24,300 / 24,150
Strategy: Experts propose a stock-by-stock strategy with consolidation continuing and global influences weighing in.
Disclaimer: Market opinion is that of respective analysts and should not be taken as investment advice. Investors are encouraged to seek the views of certified professionals before making investments.
