Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday, following weakness in global markets.
Asian markets fell, while the US stock market ended mostly lower, weighed down by selling in tech stocks.
On Tuesday, the Indian stock market extended its rally as the benchmark indices ended higher for the fourth consecutive session.
The Sensex gained 370.64 points, or 0.46%, to close at 81,644.39, while the Nifty 50 settled 103.70 points, or 0.42%, higher at 24,980.65.
“Positive momentum is likely to continue, supported by sector-specific relief measures, ongoing government policy support, and robust institutional flows. These factors are expected to sustain market activity and drive confidence across key sectors over the near term,” 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 Wednesday, tracking overnight losses on Wall Street, and as investors weighed Japan’s trade data. Japan’s Nikkei 225 fell 1.32%, while the Topix declined 0.31%. South Korea’s Kospi dropped 1.26% and the Kosdaq fell 1.77%. Hong Kong’s Hang Seng index futures indicated a weaker opening.
Gift Nifty Today
Gift Nifty was trading around 24,963 level, a discount of nearly 70 points from the Nifty futures’ previous close, indicating a weak start for the Indian stock market indices.
Wall Street
US stock market ended lower on Tuesday, weighed down by selling tech stocks.
The Dow Jones Industrial Average rose 10.45 points, roughly flat, to 44,922.27, while the S&P 500 declined 37.78 points, or 0.59%, to 6,411.37. The Nasdaq Composite closed 314.82 points, or 1.46%, lower at 21,314.95.
Nvidia share price dropped 3.5%, Microsoft shares declined 1.42%, Amazon stock price fell 1.50%, while Tesla share price lost 1.75%. Intel shares jumped roughly 7%, Home Depot stock rallied 3.17%, while Palo Alto Networks share price surged 3.06%.
China Loan Prime Rate
China kept benchmark lending rates in August unchanged for the third consecutive month. The one-year loan prime rate (LPR) was kept at 3.0%, while the five-year LPR was unchanged at 3.5%.
India-China Ties
India and China agreed to resume direct flights and step up trade and investment flows. The two countries would resume direct flights and boost trade and investment, including reopening border trade at three designated points, and facilitate visas.
Intel Shares
Intel share price jumped 6.97% to $25.31 apiece after the chipmaker got a $2 billion capital injection from Japan’s SoftBank Group. SoftBank will pay $23 per Intel share, a slight discount to Monday’s closing price of $23.66. SoftBank’s investment will come via a primary issuance of common stock by Intel, and represent an equity stake of just under 2%. The Japanese company would become the sixth largest investor in Intel.
Japan Trade Deficit
Japan’s exports dropped for a third straight month in July. Total exports from the world’s fourth-largest economy dropped 2.6% YoY in July in value terms, more than a median market forecast for a 2.1% decrease and following a 0.5% drop in June. Imports in July dropped 7.5% from a year earlier, compared with market forecasts for a 10.4% fall. As a result, Japan ran a deficit of 117.5 billion yen ($795.4 million) in July, compared with a forecast of a 196.2 billion yen surplus.
Dollar
The dollar climbed to its highest level in more than a week. The dollar index, which measures the currency against six major counterparts, edged up to 98.393 early, the highest since August 12. The dollar advanced 0.1% to 147.78 yen. The euro eased 0.1% to $1.1633, the weakest since August 14, Reuters reported, while Sterling slipped 0.1% to $1.3476, the lowest since August 12.
Gold Prices
Gold prices fell to their lowest level in nearly three weeks as the dollar strengthened. Spot gold price declined 0.1% to $3,312.79 per ounce, after reaching its lowest level since August 1. US gold futures fell 0.1% to $3,355.20.
Crude Oil Prices
Crude oil prices traded higher after a report signaled a decline in US stockpiles. Brent crude oil rose 0.49% to $66.11 a barrel, while the US West Texas Intermediate (WTI) crude futures rallied 0.59% to $62.72.
(With inputs from Reuters)
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