The Indian headline indices- Sensex and Nifty are likely to open flat in Thursday morning ahead of Lok Sabha election results and in the middle of US and China trade worries. The SGX Nifty ended closed 29 points higher at 11,191 level. Sensex and Nifty ended down on Wednesday. While, the Sensex settled lower by 203.65 points at 37,114.88, the Nifty 50 fell 65.05 points to close at 11,157. We take a close look at key things which will drive the market today:
Crude oil prices: The crude oil prices are likely to get benefit after the world’s largest economy US extended imposition of tariffs on auto imports by six months. The international Brent crude soared 0.7 percent to $72.25 a barrel, while US West Texas Intermediate (WTI) crude also surged to $62.45 a barrel, up 0.7 percent from the previous close. WTI is likely to trade in a higher range between $61.5-63. MCX Crude oil has support at Rs.4300 & price could rally till 4430 in short term, Amit Sajeja, Associate Vice President at Motilal Oswal, told Financial Express Online.
Rupee movement: The Indian currency is is likely to trade between 70.45 and 70.05 with a lower bias as trade war fears eased a bit after the US President extended the imposition of tariffs on auto imports by 6 months, Amit Sajeja, Associate Vice President at Motilal Oswal, told Financial Express Online. The rupee settled down by 0.14 percent at 70.33 as against the previous close of 70.47.
US tariffs on Auto imports: US President Donald Trump is likely to extend imposition of tariffs on auto imports by six months, according to reports. The decision is due on Friday. The investors will keenly watch the US decision on the same amid US-China trade tensions which escalated after US imposed tariffs on Chinese goods of $200 billion. China too hit back at US by imposing tariffs on US goods worth $60 billion from June 1.