Sensex, Nifty To Open Lower On Concern Over US Credit Markets

(RTTNews) - Indian shares may open on a sluggish note Friday as investors react to weak global cues and await bank loan growth and foreign exchange reserve data for direction.

Meanwhile, the Ministry of External Affairs (MEA) has clarified that no phone call took place between Prime Minister Narendra Modi and U.S. President Donald Trump on Wednesday, rejecting the latter's claim that the two leaders had spoken on halting Russian oil purchases.

MEA Spokesperson Randhir Jaiswal said that the last conversation between Modi and Trump took place on October 9, during which Modi congratulated Trump on the success of the Gaza peace plan.

On the earnings front, IT majors Infosys, Wipro, and LTIMindtree reported mixed but largely positive Q4 results.

Reliance Industries, Tata Technologies, Hindustan Zinc, JSW Energy, JSW Steel, REC and LT Technology Services are among the prominent companies that are scheduled to publish their quarterly results today.

Benchmark indexes Sensex and Nifty jumped over 1 percent each on Thursday after reports suggested that talks on a bilateral trade agreement between India and the United States have picked up pace.

Underlying sentiment was also underpinned by optimism over a domestic earnings' rebound, fresh foreign capital inflows and surging bets over a Federal Reserve rate cut.

The rupee surged 21 paise to close at 87.87 against the U.S. dollar, extending gains for the second straight session amid likely intervention by Reserve Bank of India to curb speculation and discourage short positions on the rupee.

FIIs stood as net buyers in both equity and debt segments on Thursday, according to data released by the NSDL.

Asian markets were mostly lower this morning due to escalating Sino-U.S. tensions and renewed concerns about the U.S. banking sector.

Oil extended overnight losses and was on course for a third weekly decline due to mounting concerns over a significant supply glut in the oil market and ongoing U.S.-China tensions.

Gold extended a record-breaking rally, climbing above $4300 an ounce for the first time and eyeing its best weekly performance in 17 years as a result of fears about credit quality in the U.S. economy, heightened U.S.-China frictions, concerns about the U.S. government shutdown and fears of an AI bubble.

The dollar index was set for its worst week since late July, two-year U.S. Treasury yield fell to the lowest level since 2022 and the 10-year yield dipped below 4 percent on concerns about the U.S. economic outlook.

Overnight, U.S. stocks ended firmly in the red after regional banks Zions Bancorporation and Western Alliance both disclosed problems with loans, adding to concerns over credit stress following the bankruptcies of two automotive-related companies First Brands and Tricolor Holdings.

Sentiment was also dented by heightened U.S.-China trade frictions and data showing manufacturing activity in the Philadelphia region contracted sharply in October.

The Dow dipped 0.7 percent, the S&P 500 shed 0.6 percent and the tech-heavy Nasdaq Composite declined half a percent.

European stocks closed higher on Thursday after the French government survived a confidence vote.

The pan-European Stoxx 600 gained 0.7 percent. The German DAX rose 0.4 percent, the U.K.'s FTSE 100 inched up 0.1 percent and France's CAC 40 surged 1.4 percent.