Nifty and Sensex are expected to open neutral ahead of US job data.

Muted Opening for Nifty and Sensex Anticipated Ahead of US Job Data Release

Written by: Supriya Kadu

Edited by: Omkar Devadkar

Last Updated: September 06, 2024

Summary: Investors are still uneasy about the state of the US economy, the blue-chip index shed 0.36 percent since it reached a record high at the beginning of the week.

In anticipation of significant US jobs data that would help traders assess the scope and pace of the Federal Reserve's interest rate reductions, benchmark indices are expected to open Friday morning barely changed.

It is possible that the NSE Nifty 50.NSEI may open near to its previous close of 25,145.1, since the GIFT Nifty GIFc1 was trading at 25,176 points at 8:05 a.m. IST.

Due to a lack of domestic signs and investors' ongoing concern about the US economy, the blue-chip index, which reached a record high at the beginning of the week, has lost 0.36 percent since.

According to Siddhartha Khemka, head of research for wealth management at Motilal Oswal Financial Services, "Indian equities have taken a pause and are trading at higher zones, with every dip being bought ahead of key US data and the Fed's rate decision later in the month,"

A 50 basis-point rate decrease is expected when the Fed meets on September 17–18, fueling concerns about a slowdown in the US labor market. Data revealed poor job postings overall and fewer job gains in the private sector.

More information on the state of the labor market will be provided by the US non-farm payroll report for August, which is anticipated after Indian markets close. This information will help determine the likelihood of a rate reduction.

A poor report will increase the likelihood of a 50 basis point cut, while a report indicating a strengthening labor market will support bets on a 25 basis point drop. Lower US interest rates are expected to boost capital inflows into developing economies like India.

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