Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, amid mixed global market cues.
Asian markets traded mostly higher, while the US stock market ended mixed after the inflation data.
Traders leaned in to bets that the US Federal Reserve would hold off on lowering interest rates until September, while still anticipating two 25-basis-point cuts by year-end, Reuters reported.
On Tuesday, the Indian stock market ended with sharp losses as investors resorted to profit booking after a day of nearly 4% rally on indices.
The Sensex crashed 1,281.68 points, or 1.55%, to close at 81,148.22, while the Nifty 50 settled 346.35 points, or 1.39%, lower at 24,578.35.
“The dip in the index reflects caution among participants despite easing geopolitical tensions and stable global cues. However, we expect the overall tone to remain positive, given the noticeable support in the 24,400 – 24,600 zone. The focus should remain on identifying key sectors and themes showing relative strength and using intermediate pauses to accumulate quality stocks,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mostly higher on Wednesday following overnight gains on Wall Street benchmarks amid easing US-China trade tensions.
Japan’s Nikkei 225 fell 0.7% after opening higher, while the Topic declined 1.2%. South Korea’s Kospi gained 0.5%, while Kosdaq was flat. Hong Kong’s Hang Seng Index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 24,735 level, a premium of nearly 95 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
US stock market ended mixed after softer-than-expected inflation data.
The Dow Jones Industrial Average declined 269.67 points, or 0.64%, to 42,140.43, while the S&P 500 rose 42.36 points, or 0.72%, to 5,886.55. The Nasdaq Composite closed 301.74 points, or 1.61%, higher at 19,010.09.
Nvidia stock price rallied 5.63%, Advanced Micro Devices shares jumped 4.01%, Apple share price gained 1.02%, and Intel stock rose 1.71%. Tesla share price surged 4.93%, while United Health share price crashed 17.79%.
US Inflation
US consumer prices rebounded moderately in April, leading to the smallest annual increase in four years. The Consumer Price Index increased 0.2% last month after dipping 0.1% in March, which was the first decline since May 2020. Economists polled by Reuters had forecast the US CPI inflation would rise 0.3%. In the 12 months through April, the CPI climbed 2.3% after advancing 2.4% in the 12 months through March.
India CPI Inflation
India’s retail inflation eased in April to its slowest pace in over six years. Retail inflation based on the Consumer Price Index rose 3.16% YoY in April, down from 3.34% in March, 3.61% in February, and 4.83% in the same month last year.
MSCI May Rejig
Coromandel International and FSN E-commerce Ventures will be included in the MSCI India Index, which is part of the MSCI Global Standard Index, while there were no deletions from the Index. Moreover, 12 stocks have been added to the MSCI India Domestic Smallcap Index, while 21 stocks have been removed. The changes will take place as of the closing of trade on May 30, 2025, MSCI said.
Gold Prices
Gold prices traded lower as softening US-China trade tensions weakened safe-haven demand. Spot gold prices fell 0.1% to $3,246.21 an ounce, while US gold futures rose 0.1% to $3,250.50.
Crude Oil Prices
Crude oil prices held near two-week highs amid a US-China trade deal and a falling US dollar. Brent crude futures fell 0.44% to $66.34 a barrel, while US West Texas Intermediate (WTI) crude declined 0.42% to $63.40. Both benchmarks climbed more than 2.5% in the previous session.
(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.
