Indian stock markets are closed today in observance of Guru Nanak Jayanti.
On Thursday, the benchmark indices, Sensex and Nifty, concluded with slight declines, marking their sixth consecutive session of losses as foreign investors continued to sell domestic equities. The rupee reached a new low, closing at 84.41 against the dollar.
According to provisional data from the National Stock Exchange (NSE), Domestic Institutional Investors (DIIs) made net purchases of shares worth Rs 2,482 crore on Thursday, while Foreign Institutional Investors (FIIs) sold shares worth Rs 1,850 crore.
For the year to date, FIIs have net sold shares amounting to Rs 2.83 lakh crore, whereas DIIs have acquired shares worth Rs 5.52 lakh crore.
In Asian markets this morning, stocks traded mostly higher, though regional gains were subdued following the U.S. Federal Reserve’s cautious approach to reducing interest rates amid inflation pressures.
The dollar maintained its upward momentum, nearing one-year highs, while gold experienced a modest rise after dropping over 1 percent on Thursday, reaching a two-month low. Oil prices decreased due to concerns over an oversupply and a stronger dollar.
In the U.S., stock markets ended lower the previous night after data revealed a rise in producer price inflation for October. Federal Reserve Chair Jerome Powell noted that while the central bank doesn’t need to rush into lowering interest rates, it can take a measured approach in its decisions.
The data indicated an annual wholesale inflation rate of 2.4 percent in October, which was higher than anticipated and marked the highest level in three months.
Additionally, weekly jobless claims decreased, suggesting that the weak government payroll report for October may have been an outlier.
Powell praised the U.S. economy for being "remarkably good," described the labor market as "solid," and acknowledged that inflation was "running much closer" to the bank's target.
In terms of market performance, the Dow Jones Industrial Average fell by 0.5 percent, while the tech-heavy Nasdaq Composite and the S&P 500 both declined by around 0.6 percent.
In contrast, European markets saw gains, with Germany's DAX increasing by 1.4 percent, France's CAC 40 rising by 1.3 percent, and the U.K.'s FTSE 100 adding 0.5 percent.