FX.co ★ Sensex, Nifty Seen Lower As Oil Prices Surge

Indian equities are poised to open lower today, influenced by Tata Consultancy Services failing to meet Q2 profit expectations and the oil market experiencing a second consecutive weekly increase after a notable 3% surge on Thursday amid geopolitical tensions.

Tragically, Israeli airstrikes in Beirut targeted two residential blocks, resulting in the loss of at least 22 lives and injuring almost 120 individuals.

Despite international investors continuing to offload shares, major indices such as the Sensex and Nifty managed modest gains on Wednesday. Meanwhile, the Indian rupee depreciated slightly by 2 paise, closing at 83.98 against the U.S. dollar.

In Asia this morning, stock markets displayed mixed reactions, with China's Shanghai Composite Index declining by over 1% as investors awaited potential fiscal stimulus announcements from an upcoming finance ministry press conference on Saturday.

Gold prices saw a sharp rise, while the U.S. dollar retreated from two-month peaks following indications of labor market weaknesses, which strengthened the argument for the Federal Reserve to expedite rate cuts.

In the U.S., stock markets closed marginally lower overnight, and yields on long-term Treasury bonds edged upwards amid volatile trading conditions. This followed data indicating marginally higher-than-expected inflation for September alongside a significant increase in initial jobless claims, reaching their highest level in a year last week.

The data revealed that the annual rate of consumer price growth decelerated to 2.4% in September from 2.5% in August; economists had anticipated a slowdown to 2.3%. However, core consumer price growth accelerated to 3.3% from 3.2% in August.

Investors are also absorbing insights from Federal Reserve officials and are keenly anticipating earnings reports from major banks.

The Dow Jones Industrial Average slipped by 0.1%, while the S&P 500 dipped 0.2% after achieving record closing highs the previous day. The Nasdaq Composite Index, heavily weighted towards technology, ended the day essentially flat, with a slight negative inclination.

In Europe, shares closed on a lower note Thursday amid ongoing geopolitical unrest and uncertainty surrounding U.S. interest rate directions. The pan-European STOXX 600 decreased by 0.2%, with Germany's DAX and France's CAC 40 both declining by 0.2%, and the U.K.'s FTSE 100 ending the day marginally down.