The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, following strong global market cues, amid signs of easing US-Iran tensions in the Middle East. However, volatility is expected to remain high as investors watch out for the assembly election results of four states and one Union Territory.
Asian markets traded higher, while the US stock market ended mixed, with the S&P 500 and the Nasdaq posting record closing highs.
This week, investors will watch out for key stock market triggers, including the assembly election results, Q4 earnings, developments in the US-Iran war and peace talks, crude oil prices, FII flows, currency movement and other key domestic and global macroeconomic cues.
The Indian stock market was closed for trading on Friday on the account of Maharashtra Day.
On Thursday, the Indian stock market ended sharply lower amid broad-based selloff, with the benchmark Nifty 50 slipping below 24,000 level.
The Sensex tanked 582.86 points, or 0.75%, to close at 76,913.50, while the Nifty 50 settled 180.10 points, or 0.74%, lower at 23,997.55.
“Traders should remain agile, avoid aggressive leverage, and adhere to disciplined risk management practices. With volatility expected to stay elevated, adopting a hedged approach and prioritizing capital preservation over aggressive positioning will be essential until clearer directional signals emerge,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher amid signs of patchy progress in settling the US-Iran war. Markets in Japan and China are closed for a holiday. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.6%. Japanese Nikkei futures were up modestly. South Korea’s Kospi jumped 2.53%, while the Kosdaq rallied 2.26%. Hong Kong’s Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 24,245 level, a premium of nearly 147 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended mixed on Friday, with the S&P 500 and the Nasdaq advancing to record closing highs, boosted by robust earnings and a dip in crude oil prices.
The Dow Jones Industrial Average declined 152.87 points, or 0.31%, to 49,499.27, while the S&P 500 gained 21.11 points, or 0.29%, to 7,230.12. The Nasdaq Composite closed 222.13 points, or 0.89%, higher at 25,114.44.
Nvidia stock price fell 0.56%, Apple shares rallied 3.28%, Atlassian share price jumped 29.58%, Microsoft shares rose 1.57%, Amazon share price gained 1.27%, while Tesla stock price rallied 2.41%. Roblox shares plunged 18.3% and Reddit shares surged 13.1%.
US-Iran War
US President Donald Trump said the United States will begin a new operation called “Project Freedom” to help foreign commercial ships navigate safely through the Strait of Hormuz amid ongoing tensions in the Middle East. In a post on Truth Social, Trump said the initiative would start Monday morning (Middle East time) and is aimed at protecting “neutral and innocent bystanders” affected by regional instability.
Exits Polls
The exit polls of four assembly elections show most pollsters are of the opinion that the BJP will retain power in Assam and Puducherry. In Tamil Nadu, except one, all posters have projected the ruling DMK to emerge victorious once again. In Kerala, there the Congress-led UDF is expected to return to power.
In West Bengal, three pollsters have projected the BJP to win, while three others are giving a clear edge to TMC. Counting of votes will be held today in West Bengal, Tamil Nadu, Assam, Kerala and Puducherry.
Gold Rate Today
Gold prices was little changed amid signs of progress toward a US-Iran deal. Spot gold price fell 0.1% to $4,609.23 an ounce, while silver prices rose 0.3% to $75.57 an ounce.
Dollar
The US dollar index, which measures the greenback’s strength against a basket of six currencies, was flat at 98.144. The yen rose 0.1% to 156.885 against the dollar. The British pound was up 0.1% at $1.3586, while the euro rose 0.1% at $1.1730.
Crude Oil Prices
Crude oil prices declined after US would begin an effort to free up ships stranded in the Strait of Hormuz. Brent crude oil futures fell 0.41% to $107.73 a barrel, while US West Texas Intermediate was at $101.24 a barrel, down 0.69%.
(With inputs from Agencies)