The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Tuesday, following mixed cues from global markets, despite some improvement in geopolitical sentiment overnight.
Asian markets traded higher, while the US markets ended mixed overnight, led by gains in semiconductor stocks.
On Monday, the Indian stock market ended sharply lower, amid renewed tensions in the Middle East, a spike in crude oil prices and fears of a US interest rate hike.
The Sensex crashed 719.08 points, or 0.97%, to close at 73,524.26, while the Nifty 50 settled 243.70 points, or 1.04%, lower at 23,123.00.
“Given the prevailing uncertainty and heightened global volatility, we continue to maintain a cautious stance and prefer a sell-on-rise approach in the index. At the same time, traders should focus on stock-specific opportunities while maintaining strict risk and position management,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Tuesday, following overnight gains on tech socks on Wall Street. Japan’s Nikkei 225 rose 0.1%, while Topix gained 0.27%. South Korea’s Kospi rallied 3.31%, while Kosdaq jumped 4%. Hong Kong Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 23,130 level, a discount of nearly 44 points from the Nifty futures’ previous close, indicating a tepid start for the Indian stock market indices.
Wall Street
US stock market ended mixed on Monday, led by gains in chipmakers amid short-covering.
The Dow Jones Industrial Average declined 80.77 points, or 0.16%, to 50,786.01, while the S&P 500 rose 21.99 points, or 0.30%, to 7,405.73. The Nasdaq Composite closed 220.23 points, or 0.86%, higher at 25,929.66.
Nvidia stock price rose 1.73%, AMD shares rallied 5.14%, Intel share price jumped 11.2%, Broadcom stock gained 2.82%, Microsoft shares fell 1.18%, Apple stock price dropped 1.89%, while Tesla stock price surged 4.59%.
US-Iran War
Iran and Israel said they had halted attacks on each other after an appeal from US President Donald Trump, though Tehran warned it would resume hostilities if Israel continued to hit Hezbollah in Lebanon. Iranian President Masoud Pezeshkian said that Tehran has not abandoned negotiations despite a fresh exchange of missile strikes with Israel.
H-1B Visa Fees
A federal judge on Monday struck down a $100,000 fee US President Donald Trump imposed on new H-1B visas for highly skilled foreign workers, concluding that it constituted an unlawful tax Congress never authorized.
Dollar
The US dollar held near a two-month high. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was little changed at 100.03, near the two-month high of 100.21 it struck on Monday. The euro stood at $1.1528 and the sterling fetched $1.3335, both down roughly 0.05% so far. The Japanese yen weakened to as much as 160.295.
Gold Rate Today
Gold prices eased for a third straight session, weighed down by rising Treasury yields. Spot gold price fell 0.2% to $4,319.98 per ounce, while US gold futures for August delivery dropped 0.4% to $4,344.30. Spot silver price fell 0.6% to $67.84 per ounce.
Crude Oil Prices
Crude oil prices rose after Iran and Israel left the door open to a possible resumption of attacks on each other. Brent crude futures rose 0.14% to $94.38 a barrel, while US West Texas Intermediate gained 0.12% to $91.41 a barrel.
(With inputs from Agencies)
