Indian stock market: The equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday, following a rally in global markets.
Asian markets traded higher, while the US stock market ended with gains overnight, with the Nasdaq posting a record high close, amid increased expectations of a Federal Reserve interest rate cut.
Traders are pricing in an 89.4% chance of a 25 basis point rate cut at the Fed’s September meeting and a 10.6% probability of a jumbo 50 basis point rate cut, according to the CME Group’s FedWatch tool.
On Monday, the Indian stock market ended with minor gains, coming off the day’s high on profit booking amid worries over persisting US tariff-related uncertainties and relentless foreign capital outflow.
The Sensex gained 76.54 points, or 0.09%, to close at 80,787.30, while the Nifty 50 settled 32.15 points, or 0.13%, higher at 24,773.15.
“Looking ahead, the market is expected to maintain a positive trajectory, supported by GST rate cuts benefiting key sectors and the potential US Federal Reserve’s interest rate cut,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Tuesday, tracking overnight rally on Wall Street. Japan’s Nikkei 225 rallied 1.03% to a record high, crossing 44,000 level, while the Topix rose 0.52%. South Korea’s Kospi gained 0.25%, while the Kosdaq rose 0.19%. Hong Kong’s Hang Seng index futures indicated a marginally higher opening.
Gift Nifty Today
Gift Nifty was trading around 24,928 level, a premium of nearly 36 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 Monday, with the Nasdaq notching a record high close, lifted by hopes of a Federal Reserve interest rate cut.
The Dow Jones Industrial Average gained 0.25% to 45,514.95, while the S&P 500 rose 0.21% to end at 6,495.15. The Nasdaq closed 0.45% higher at 21,798.70, its highest close ever.
Broadcom shares rallied 3.2%, Nvidia share price rose 0.77%, Amazon stock gained 1.51%, while Tesla stock price fell 1.27%. Robinhood Markets shares jumped 16% and AppLovin stock price soared 12%. AT&T and Verizon shares both fell more than 2% and T-Mobile share price declined almost 4%.
Dollar
The US dollar sank to an almost seven-week low on Tuesday. The dollar index fell to the lowest since July 24 to 97.344 against the basket of currencies. The Japanese yen strengthened 0.2% against the dollar at 147.22. The offshore yuan traded flat at 7.1212 yuan per dollar, while sterling traded at $1.3556, up 0.1%, and the euro edged 0.1% higher to $1.1774.
Gold Prices
Gold prices hovered near a record high, holding firm above the $3,600 level, as growing Fed rate cut hopes this month lifted demand for the precious metal. Spot gold price rose 0.1% to $3,640.41 per ounce. Bullion rose to a record high of $3,646.29 on Monday. US gold futures for December delivery edged 0.1% higher to $3,682.
Crude Oil Prices
Crude oil prices rose after OPEC decided to increase production by less than what market participants had anticipated. Brent crude price gained 0.26% to $66.19 a barrel, while US West Texas Intermediate crude rose 0.27% to $62.43 a barrel.
FII Data
On Monday, Foreign institutional investors (FIIs) net sold Indian shares worth ₹2,170.35 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹3,014.30 crore, as per provisional data available on the exchanges.
(With inputs from Reuters)
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