The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a tepid note on Tuesday, following mixed cues from global markets.
Asian markets traded lower, while the US stock market ended mixed overnight, with gains in tech stocks lifting Nasdaq and S&P 500.
On Monday, the Indian stock market ended the choppy session flat with a positive bias.
The Sensex rose 39.78 points, or 0.05%, to close to 83,978.49, while the Nifty 50 settled 41.25 points, or 0.16%, higher at 25,763.35.
“Going ahead, corporate earnings and trade deal developments are likely to guide market direction, in the absence of major triggers. Amid this setup, we continue to recommend a selective approach, focusing on sectors showing relative strength, and preferring large-cap and large mid-cap stocks for long trades while maintaining moderate position sizes amid global uncertainty,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Tuesday. Japan’s Nikkei 225 fell 0.39%, and the Topix declined 0.23%. South Korea’s Kospi dropped 0.32% while the Kosdaq rose 0.24%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 25,869 level, a discount of nearly 30 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended mixed on Monday, with the S&P 500 and the Nasdaq closing higher, led by tech stocks.
The Dow Jones Industrial Average declined 226.19 points, or 0.48%, to 47,336.68, while the S&P 500 gained 11.77 points, or 0.17%, to 6,851.97. The Nasdaq Composite closed 109.77 points, or 0.46%, higher at 23,834.72.
Amazon stock price surged 4.0%, Nvidia share price gained 2.17%, AMD shares rose 1.38%, while Tesla stock price rallied 2.59%. UnitedHealth Group stock price fell 2.3%, Merck share price declined 4.1%, Kimberly-Clark shares slid 14.6% and Kenvue shares jumped 12.3%.
US PMI
US manufacturing contracted for an eighth straight month in October. The ISM said its manufacturing PMI fell to 48.7 last month from 49.1 in September. The PMI remained above 42.3, a level that the ISM said over time was consistent with an expansion of the overall economy. Economists polled by Reuters had forecast the PMI rising to 49.5.
Amazon – OpenAI Deal
Amazon and OpenAI signed a $38 billion deal that enables the ChatGPT maker to run its artificial intelligence systems on Amazon’s data centers in the US. As a part of the deal, OpenAI will be able to power its AI tools using “hundreds of thousands” of Nvidia’s specialized AI chips through Amazon Web Services.
Japan PMI
Japan’s manufacturing activity shrank in October at the fastest pace in 19 months. The S&P Global Japan Manufacturing Purchasing Managers’ Index (PMI) slipped to 48.2 in October from 48.5 in September, undershooting the flash reading of 49.3 and hitting the lowest since March 2024.
Dollar
The dollar was steady, hovering near a three-month high. The dollar index, which measures the US currency against six other units, was 0.1% higher at 99.99, at a three-month high, Reuters reported. The yen was softer at 154.38 per US dollar. The euro eased 0.11% to $1.1506, while sterling last fetched $1.312, down 0.13%.
Gold Prices
Gold prices steadied below $4,000 an ounce as traders digested commentary from Federal Reserve policymakers for clues on the bank’s next move on interest rates. Gold price was little changed at $3,996.32 an ounce.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.