Indian stock market: The equity market benchmark indices, Sensex and Nifty 50, are expected to open lower and extend losses on Wednesday, following weak global market cues.
Asian markets fell, while the US stock market ended lower overnight, amid rising bond yields globally.
On Tuesday, the Indian stock market ended lower, weighed down by fag-end profit booking, with the benchmark Nifty 50 closing below 24,600.
The Sensex declined 206.61 points, or 0.26%, to close at 80,157.88, while the Nifty 50 settled 45.45 points, or 0.18%, lower at 24,579.60.
“We reiterate our preference for focusing on sectors and themes displaying relative strength, such as FMCG, auto, and consumer durables. Additionally, we are observing early signs of reversal in select PSU themes like defense and railways, following the sharp correction from record highs. Participants should align their positions accordingly, with an emphasis on stock selection,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mostly lower on Wednesday, tracking overnight losses on Wall Street. Japan’s Nikkei 225 fell 0.40%, while the Topix index declined 0.35%. South Korea’s Kospi index rose 0.01%, while the Kosdaq was flat. Hong Kong’s Hang Seng index futures indicated a weaker open.
Gift Nifty Today
Gift Nifty was trading around 24,618 level, a discount of nearly 73 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended sharply lower on Tuesday as investors weighed the future of President Donald Trump’s tariffs after a federal appeals court ruling.
The Dow Jones Industrial Average declined 249.07 points, or 0.55%, to 45,295.81, while the S&P 500 dropped 44.72 points, or 0.69%, to 6,415.54. The Nasdaq Composite closed 175.92 points, or 0.82%, lower at 21,279.63.
Nvidia share price fell 1.94%, Apple shares declined 1.04%, Amazon stock price dropped 1.60%, while Tesla share price fell 1.35%. Alphabet shares jumped 6.73% in after market hours. Kraft Heinz stock plunged 7%, and PepsiCo shares gained 1.1%.
Trump Tariffs on India
US President Donald Trump says he’s not looking at lowering tariffs on India. Trump responded “no” when asked by a reporter whether he is considering taking away some of the tariffs imposed on India. “We get along with India very well,” Trump added, but criticized what he said was an imbalanced trade relationship with New Delhi because of high Indian levies.
US Manufacturing PMI
US manufacturing contracted for a sixth straight month in August. The Institute for Supply Management (ISM) said its manufacturing PMI edged up to 48.7 last month from 48.0 in July. Economists polled by Reuters had forecast the PMI would rise to 49.0.
Japan Services PMI
Japan’s service sector growth moderated in August. The S&P Global final Japan Services purchasing managers’ index (PMI) slipped to 53.1 in August from 53.6 in July, remaining above the 50.0 threshold that indicates expansion.
US Treasury Yields
Bond yields are on the rise around the world, on worries about growing mountains of debt. The US 30-year yield was up 5.1 bps at 4.96%, while benchmark 10-year Treasury yields rose 4.5 bps to 4.27%.
Gold Prices
Gold prices extended their record run, driven by growing investor confidence that the US Federal Reserve will cut interest rates in September. Spot gold price rose 0.2% to at $3,540.64 per ounce, while US gold futures for December delivery gained 0.4% to $3,607.60.
Dollar
The US dollar index gained 0.66% against a basket of currencies to 98.44. The euro fell 0.1% to $1.1630, the pound last traded 0.12% lower at $1.3378 and the Japanese yen was down 0.2% at 148.62 per dollar.
Crude Oil Prices
Crude oil prices were steady, holding on to sanctions-driven gains from the previous session. Brent crude price was flat at $69.14 a barrel, while the US West Texas Intermediate crude rose 0.06% to $65.63 a barrel.
(With inputs from Reuters)
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