The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Tuesday, following weakness in global markets.
Asian markets traded lower, while the US stock market ended lower overnight, amid a sell-off in technology stocks.
On Monday, the Indian stock market ended higher, led by healthy across-the-board buying, as upbeat Q2 results, and prospects of an India-US trade deal supported sentiment.
The Sensex rallied 388.17 points, or 0.46%, to close at 84,950.95, while the Nifty 50 settled 103.40 points, or 0.40%, higher at 26,013.45.
“We expect the market to witness continued up-move, driven by improving earnings momentum, strong domestic macros and stable policy support,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Tuesday, following overnight slide on Wall Street. Japan’s Nikkei 225 plunged 2.28%, while the Topix declined 0.6%. South Korea’s Kospi fell 1.63% while the Kosdaq slid 0.58%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 26,001 level, a discount of nearly 59 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended sharply lower on Monday, driven by technology stocks, ahead of quarterly earnings from Nvidia and a long-delayed US jobs report this week.
The Dow Jones Industrial Average declined 557.24 points, or 1.18%, to 46,590.24, while the S&P 500 dropped 61.70 points, or 0.92%, to 6,672.41. The Nasdaq Composite closed 192.51 points, or 0.84% lower, at 22,708.08.
Nvidia share price fell 1.88%, AMD shares declined 2.55%, Apple shares dropped 1.8%, while Alphabet stock price rose 3.1%. Dell Technologies shares plunged 8.4% and Hewlett Packard Enterprise tanked 7%. Tesla stock price gained 1.13%.
Gaza Peace Plan
The UN Security Council voted to adopt a US-drafted resolution endorsing President Donald Trump’s plan to end the war in Gaza and authorizing an international stabilization force for the Palestinian enclave, Reuters reported.
India-US Trade Deal
The first phase of the proposed India-US bilateral trade agreement (BTA) is ‘nearing closure’ and would address the hefty 50 per cent tariffs imposed by the Trump administration on Indian goods, in addition to resolving America’s market access issues, PTI reported, quoting a government official.
Unemployment Rate
India’s unemployment rate for people aged 15 and above held steady at 5.2% in October, unchanged from September. An easing in rural joblessness, down from 4.6% to 4.4%, was offset by a modest uptick in urban unemployment, which inched up from 6.8% to 7%.
Trade Deficit
India’s exports contracted 11.8% to $34.38 billion in October on account of the impact of high tariffs by the US, while imports jumped 16.63% to an all-time high of $76.06 billion due to high inbound shipments of gold, silver, cotton raw/waste, fertiliser, and sulphur. Thus, the trade deficit widened to a record high of $41.68 billion.
Dollar
The yen slid to its weakest level in more than nine months. The dollar index, a measure of the US currency against major rivals, was last up 0.2% at 99.545. The US dollar edged as much as 0.1% higher against the yen to 155.29, The euro was trading flat at $1.1594, while Sterling edged 0.1% lower at $1.3149.
Gold Prices
Gold prices fell for a fourth straight session, weighed down by a firm dollar and diminished prospects of a US Fed rate cut next month. Spot gold price fell 0.1% to $4,038.43 per ounce, while US gold futures for December delivery fell 0.9% to $4,037.50 per ounce.
Crude Oil Prices
Crude oil prices steadied as investors weighed the impact from an emerging surplus against US sanctions on Russia. Brent crude oil prices fell 0.37% to $63.96 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.38% to $59.68.
(With inputs from Reuters)
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