The GIFT Nifty implied a gap-down opening for the second consecutive session as tensions between India and Pakistan escalated last night after Pakistan attacked Indian cities with missiles and drones. Also, US markets closed on a higher note as the US President Donald Trump announced a trade deal framework between the US-UK. Also, Trump announced to cut reciprocal tariffs on China from 145% to 50%, to which the Asian indices opened Friday’s trade on a higher note.

Earlier on Thursday, the NSE Nifty 50 closed the session 140 points or 0.58% lower at 24,274, while the BSE Sensex rose 412 points or 0.51% to close at 80,335.

On Thursday late at night, India retaliated to Pakistan’s unprovoked attack on its cities and military bases. The Indian forces intercepted Pakistani drones over key areas amid city-wide blackouts. The Air Force and Defence Ministry confirmed that three Indian military stations in Jammu, Pathankot and Udhampur were targeted by the Pakistani drones and missiles. The Defence Ministry confirmed that 8 missiles were targeted at Jammu city and subsequently thwarted. 

On May 09, major Asian indices traded on a higher note as the US is expected to cut reciprocal tariffs on Asian countries to 25%. Japan’s Nikkei 225 was up 1.19% or 438 points to 37,367. Hong Kong’s Hang Seng was up 0.35% at 22,856. Korea’s Kospi was trading 0.07% lower at 2,577. The Chinese index, Shanghai Composite, was trading 0.01% lower at 3,351.

The US stock markets rose in Thursday’s session after the US and UK signed a historic trade deal to reduce tariffs. The Dow Jones Industrial Average rose 254.48 points, or 0.62%, to finish at 41,368.45. The S&P 500 gained 0.58% and settled at 5,663.94. The Nasdaq Composite advanced 1.07% to end at 17,928.14.

US President Donald Trump has announced a trade deal with the UK, reducing tariffs on several items and paving the way for a $10 billion Boeing purchase. The first major agreement signed since the US imposed reciprocal tariffs on most of the globe earlier this year.

The Trump administration is likely to reduce the reciprocal tariffs it imposed on Chinese goods. It could possibly be as early as next week. According to the media reports, the current tariffs of 145% on Chinese imports could be lowered to 50%-54%. At the same time, tariffs on other countries may be reduced to 25%.

The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was up 0.08% at 100.72 on Friday morning. The index evaluates the strength or weakness of the US dollar in comparison to major currencies. The basket contains currencies such as the British Pound, Euro, Swedish Krona, Japanese Yen, Swiss Franc, etc. The rupee depreciated 1.01% to close at 85.69 to the dollar on May 08.

All seven American Depository Receipts (ADRs) of the Indian companies were trading in the red. The ADRs of Makemytrip were hit the most, falling 13.3% to $ 97.13, while it was followed by WNS Holdings, which declined more than 5% to $55.80. HDFC Bank and Infosys ADRs also tanked 5% during the trade, but later closed slightly higher from that level, 4.5% lower.

The crude oil prices traded flat on Friday. WTI crude prices were trading at $59.95, up by 0.06%, while Brent crude prices were trading at $62.89, up by 0.07%, on Friday morning.

Foreign institutional investors (FII) were the net buyers of shares worth Rs 2,007.96 crore. Meanwhile, the Domestic institutional investors (DII) were the net sellers of shares worth Rs 596.25 crore on May 08, 2024, according to the provisional data available on the NSE.