The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, following gains in global markets.
Asian markets traded higher, while the US stock market rallied, on rising hopes of US Federal Reserve rate cut.
This week, the investors will focus on key stock market triggers, including the developments over India-US trade deal, Q2 GDP data, trends in rupee, flow of foreign institutional funds, gold prices, geopolitical developments and other key domestic and global macroeconomic data.
On Friday, the Indian stock market ended lower, snapping its two-day winning run, weighed down by a fall in key index finance heavyweights.
The Sensex declined 400.76 points, or 0.47%, to close at 85,231.92, while the Nifty 50 settled 124.00 points, or 0.47%, lower at 26,068.15.
“We expect markets to remain firm next week supported by buying on dips, improving demand outlook in Q3 and resilient flows. Any progress on the India-US trade talks would be a key short term catalyst for the markets,” 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 higher on Monday, following Wall Street rally, on increased hopes of an interest rate cut by the US Federal Reserve. Japan’s markets are closed for a public holiday. South Korea’s Kospi rallied 1.28%, while the Kosdaq rose 0.5%. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 26,166 level, a premium of nearly 89 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended higher on Friday, but all three of the major indexes posted weekly losses amid concerns over lofty technology valuations.
The Dow Jones Industrial Average rallied 493.15 points, or 1.08%, to 46,245.41, while the S&P 500 gained 64.23 points, or 0.98%, to 6,602.99. The Nasdaq Composite closed 195.04 points, or 0.88%, higher at 22,273.08. For the week, the Dow Jones declined 1.9%, the S&P 500 plunged about 2% and the Nasdaq dropped 2.7%.
Nvidia share price fell 0.97%, Microsoft shares declined 1.32%, Apple stock price gained 1.97%, Amazon shares rose 1.63%, Alphabet shares surged 3.5% and Meta Platforms rose 0.9%. Tesla stock price fell 1.00%, Eli Lilly shares gained 1.6% and Intel share price rallied 2.62%.
Ukraine Peace Plan
The United States and Ukraine said they had created an “updated and refined peace framework” to end the war with Russia. The talks were described as “constructive, focused, and respectful,” underscoring the shared commitment to achieving a just and lasting peace, according to a joint statement.
US Federal Reserve
New York Fed president John Williams said that the US Federal Reserve can still cut interest rates “in the near term” without putting its inflation goal at risk, Reuters reported. Federal Reserve Bank of Boston President Susan Collins said that she’s still leaning against the US central bank cutting its interest rate target next month as it faces ongoing risks to both its inflation and job mandates.
Forex Reserves
India’s forex reserves jumped $5.543 billion to $692.576 billion during the week ended November 14 due to a steep increase in the value of gold reserves. The overall reserves had dropped by $2.699 billion to $687.034 billion in the previous reporting week.
Dollar
The dollar was steady as intervention risks swirled around the yen. The dollar index was steady at 100.25 and other majors were held fairly close to recent lows, Reuters reported. Yen fell to 156.71 per dollar, euro was steady at $1.1506 and Sterling traded at $1.3093.
Gold Prices
Gold prices were steady as the market weighed the chances of another US Fed rate cut in the coming months. Gold price rose 0.1% to $4,070.08 an ounce after dropping 0.3% in the previous session.
Crude Oil Prices
Crude oil prices declined as traders weighed the prospect of a Ukraine-Russia peace deal. Brent crude oil fell 0.13% to $62.48 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.16% to $57.97.
Bitcoin Prices
Bitcoin prices traded higher, rebounding from multi-month lows, and options-fueled selling added to the volatility. Bitcoin price was up 1.45% at $86,707.95, while Ether price was flat at around $2,786.
(With inputs from Reuters)
