Indian stock market: The equity benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, following mixed cues in global markets.
Asian markets traded mostly higher, while the US stock market ended lower last week, after weak jobs data.
This week, investors will focus on key stock market triggers, including the developments over Trump tariffs, US and India inflation data, flow of foreign funds, trends in gold and silver prices, and other key domestic and global macroeconomic data and geopolitical situations.
On Friday, the Indian stock market ended flat on profit booking amid concerns over Trump tariffs and their economic fallout, as well as sustained foreign capital outflow.
The Sensex eased 7.25 points, or 0.01%, to close at 80,710.76, while the Nifty 50 settled 6.70 points, or 0.03%, higher at 24,741.00.
“While external headwinds from global trade uncertainties and tariff hikes remain a key risk, the combination of a simplified GST framework and positive domestic macros would underpin market momentum in 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 mostly higher on Monday as investors eyed key economic data in the region, with Japanese markets rallying after PM Shigeru Ishiba resigned.
Japan’s benchmark Nikkei 225 jumped 1.78% and Topix surged 1% to a record high. South Korea’s Kospi gained 0.16%, while the small-cap Kosdaq rose 0.47%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 24,909 level, a premium of nearly 62 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 as investors weighed economic worries against optimism over interest rate cuts by the Federal Reserve.
The Dow Jones Industrial Average declined 220.43 points, or 0.48%, to 45,400.86, while the S&P 500 fell 20.58 points, or 0.32%, to 6,481.50. Nasdaq Composite closed 7.31 points, or 0.03%, lower at 21,700.39. For the week, the Dow Jones dropped 0.3%, the S&P 500 rose 0.3% and the Nasdaq rallied 1.1%.
Nvidia share price fell 2.7%, Microsoft shares declined 2.55%, Amazon stock dropped 1.42%, while Tesla stock price surged 3.64%. Broadcom shares jumped 9.4%, Kenvue stock price plunged 9.3% and Lululemon Athletica share price dropped 18.6%.
Trump Tariffs
US President Donald Trump said at the White House there was “nothing to worry about” with US-India ties and the two countries had a “special relationship.” He called Narendra Modi a “great prime minister” and said he would always be friends with him. Modi responded hours later with a post on X, saying he “deeply” appreciated and reciprocated the sentiments.
Russia-Ukraine War
Russia launched its largest air attack of the war on Ukraine overnight, setting the main government building on fire in central Kyiv and killing at least four people, Reuters reported, quoting Ukrainian officials.
US Nonfarm Payrolls
US job growth weakened sharply in August. Nonfarm payrolls increased by only 22,000 jobs last month after rising by an upwardly revised 79,000 in July. Economists polled by Reuters had forecast payrolls would rise by 75,000 jobs after a previously reported gain of 73,000 in July.
US Unemployment Rate
The US unemployment rate increased to nearly a four-year high of 4.3% in August. Average hourly earnings increased 0.3%, matching the gain in July. In the 12 months through August, wages advanced 3.7% after rising 3.9% in the comparable period in July.
Japan PM Resigns
Japanese Prime Minister Shigeru Ishiba resigned on Sunday, ushering in a potentially lengthy period of policy uncertainty at a shaky moment for the world’s fourth-largest economy, Reuters reported. Ishiba, 68, told a press conference he must take responsibility for a series of bruising election losses.
Japan GDP
Japan’s economy expanded an annualised 2.2% in the April-June period from the previous quarter. On a quarter-on-quarter basis, GDP grew 0.5%, compared with a median forecast and the initial estimate of a 0.3% rise.
OPEC Output Raise
OPEC has agreed to further raise oil production from October. Eight members of OPEC agreed to raise production from October by 137,000 barrels per day, much lower than the monthly increases of about 555,000 bpd for September and August and 411,000 bpd in July and June.
Auto Price Cuts
After the GST rate cut, several Indian auto manufacturers have announced to slash their car prices. Hyundai Motor India and Tata Motors have announced to cut the prices on their cars. Earlier, Mahindra & Mahindra (M&M) and Renault also announced a drop in their four-wheeler vehicles to pass on the benefits of the GST rate cut to customers.
Crude Oil Prices
Crude oil prices rose after OPEC agreed to raise output further but at a slower pace from October. Brent crude oil price rallied 0.5% to $65.83 a barrel, while US West Texas Intermediate crude gained 0.48% to $62.17 a barrel.
Dollar
The yen fell broadly, while the dollar was nursing losses after tumbling. The dollar index steadied at 97.88, after sliding more than 0.5% on Friday. The yen slumped 0.7% against the dollar to 148.43. Against the dollar, sterling fell 0.14% to $1.3488, while the euro was down 0.13% at $1.1705.
Gold Prices
Gold prices held firm near an all-time high, inching closer to a key $3,600 level. Spot gold price rose 0.1% to $3,588.48 per ounce. Bullion rose to a record high of $3,599.89 on Friday. US gold futures for December delivery fell 0.7% to $3,628.50.
FII Selling
On Friday, Foreign institutional investors (FIIs) net sold Indian shares worth ₹1,304.91 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹1,821.23 crore, as per provisional data available on the exchanges.
(With inputs from Reuters)
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