Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a muted note on Monday, following cautiousness amid weak global market cues.
Asian markets traded mixed on Monday, while the US stock market ended lower on Friday, with the S&P suffering its biggest daily percentage decline in more than two months.
This week, investors will watch out for key stock market triggers, including the Reserve Bank of India (RBI) monetary policy meeting, developments in India-US trade deal, Q1 results, IPO activity, flow of foreign funds, trends in gold prices and crude oil prices.
On Friday, the Indian stock market ended lower amid broad-based selling on the first day of the August derivatives series on concerns over US tariffs.
The Sensex declined 585.67 points, or 0.72%, to close at 80,599.91, while the Nifty 50 settled 203.00 points, or 0.82%, lower at 24,565.35.
“Markets continue to grapple with a mixed earnings season, while the recent tariff announcement and persistent foreign fund outflows are further weighing on sentiment. We maintain our cautious stance and continue to recommend a hedged approach with a negative bias until clear signs of reversal emerge,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Monday, following a Wall Street slump last week, after the US tariffs and jobs report. Japan’s Nikkei 225 tanked 2.10%, while the Topix index dropped 1.86%. South Korea’s Kospi index rose 0.31%, while the Kosdaq gained 0.53%. Hong Kong’s Hang Seng index futures indicated a weaker opening.
Gift Nifty Today
Gift Nifty was trading around 24,686 level, a premium of nearly 58 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended lower on Friday after new US tariffs on dozens of trading partners and weak jobs report spurred selling pressure.
The Dow Jones Industrial Average declined 542.40 points, or 1.23%, to 43,588.58, while the S&P 500 dropped 101.38 points, or 1.60%, to 6,238.01. The Nasdaq Composite closed 472.32 points, or 2.24%, lower at 20,650.13. For the week, the S&P 500 fell 2.36%, the Nasdaq declined 2.17%, and the Dow fell 2.92%.
Apple share price fell 2.5%, Amazon shares tumbled 8.3%, Tesla stock price declined 1.83%, Nvidia share price dropped 2.33%, and Microsoft shares fell 1.76%.
US Non-Farm Payrolls
US nonfarm payrolls increased by 73,000 jobs last month after rising by a downwardly revised 14,000 in June, the fewest in nearly five years. Economists polled by Reuters had forecast payrolls would increase by 110,000 jobs after rising by a previously reported 147,000 in June.
US Unemployment Rate
US employment growth slowed more than expected in July. The Labor Department’s closely watched employment report showed the unemployment rate rose to 4.2% last month amid a decline in the volatile household employment segment.
GST Collection
Gross GST collection increased 7.5% to about ₹1.96 lakh crore in July on higher domestic revenues and taxes from imports. Gross GST mop-up was ₹1.82 lakh crore in July 2024. Last month, the collection was ₹1.84 lakh crore.
OPEC Output Raise
OPEC agreed to raise oil production by 547,000 barrels per day for September. The move marks a full and early reversal of OPEC’s largest tranche of output cuts plus a separate increase in output for the United Arab Emirates amounting to about 2.5 million bpd, or about 2.4% of world demand.
Dollar
The US dollar edged marginally higher after a dismal US jobs report. The dollar edged up 0.2% to 98.86 against a basket of currencies, after sliding more than 1% on Friday, Reuters reported. The greenback was last trading 0.14% higher at 147.60 yen. The euro fell 0.2% to $1.1560, while sterling eased 0.1% to $1.3263.
The two-year Treasury yield fell to a three-month low of 3.6590% as traders heavily scaled up bets of an interest rate cut by the US Federal Reserve in September, while the benchmark 10-year yield languished near a one-month low at 4.2060%.
Gold Prices
Gold prices fell on profit booking after a sharp rise in the previous session. Spot gold price declined 0.3% to $3,351.80 per ounce. Bullion had risen more than 2% on Friday. US gold futures gained 0.2% to $3,404.80.
Crude Oil Prices
Crude oil prices slipped after OPEC agreed to another large production hike in September. Brent crude futures fell 0.42% to $69.38 a barrel, while US West Texas Intermediate crude was down 0.39% to $67.07 a barrel, after both contracts closed about $2 a barrel lower on Friday.
(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.
