The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday amid positive global market cues.
Asian markets gained, while the US stock market ended higher overnight, supported by technology and financial stocks.
On Tuesday, the Indian stock market ended higher, extending gains for the second consecutive session.
The Sensex gained 173.81 points, or 0.21%, to close at 83,450.96, while the Nifty 50 settled 42.65 points, or 0.17%, higher at 25,725.40.
“We may see continued consolidation in the Nifty 50 index in the absence of a major trigger, although sectoral moves are likely to keep participants engaged. We suggest focusing on stock selection and trade management, with a preference for banking, energy, auto, and select metal counters for long trades, while being selective in other sectors,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded modestly higher in thin holiday trading, following overnight gains on Wall Street. Japan’s Nikkei rallied 0.86%, and the broader Topix gained 1.11%. Mainland China, Hong Kong, Singapore, South Korea, Taiwan and Vietnam markets are closed for the Lunar New Year holiday.
Gift Nifty Today
Gift Nifty was trading around 25,762 level, a premium of nearly 23 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended with slight gains on Tuesday, led by gains in technology and financial stocks.
The Dow Jones Industrial Average rose 32.26 points, or 0.07%, to 49,533.19, while the S&P 500 gained 7.05 points, or 0.10%, to 6,843.22. The Nasdaq Composite closed 31.71 points, or 0.14%, higher at 22,578.38.
Nvidia stock price gained 1.18%, AMD shares slipped 2.05%, Microsoft share price declined 1.11%, Apple stock price rallied 3.17%, Amazon shares rose 1.19%, while Tesla stock price dropped 1.63%.
Norwegian Cruise Line shares rallied 12.1%, Fiserv shares jumped 6.9%, Masimo share price spiked 34.2% and Danaher stock price fell 2.9%.
Iran-US Nuclear Talks
Iran and the United States reached an understanding on main “guiding principles” in talks aimed at resolving their longstanding nuclear dispute, but that does not mean a deal is imminent, Iranian Foreign Minister Abbas Araqchi said.
Japan Trade Deficit
Japan’s exports rose for a fifth consecutive month in January. Total exports by value rose 16.8% YoY in January, data showed, more than a median market forecast for a 12% increase and following a 5.1% rise in December. Imports dropped 2.5% from a year earlier, compared with market forecasts for a 3% increase. As a result, Japan ran a trade deficit of 1.15 trillion yen ($7.51 billion) in January, compared with the forecast of a 2.14 trillion yen deficit.
Dollar
The dollar held gains as geopolitical risks kept markets on edge. The dollar index, which measures the greenback against a basket of currencies, was little changed at 97.11 after a two-day advance, Reuters reported. The euro was steady at $1.1852, the yen strengthened 0.1% to 153.12 per dollar, and Sterling held at $1.3563.
Gold Prices
Gold prices traded flat after a two-day decline. Spot gold price was little changed at $4,879.79 an ounce, while silver price was also flat at $73.52 an ounce.
Crude Oil Prices
Crude oil prices held a decline after positive talks between the US and Iran. Brent crude oil price fell 0.03% to $67.36 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.14% to $62.24.
(With inputs from Reuters)
