Indian stock market: The equity market benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday, following losses in global markets.
Asian markets traded lower, while the US stock market declined overnight, with all three Wall Street indices breaking a three-session streak of record closing.
On Tuesday, the Indian stock market indices ended marginally lower, extending losses to their third consecutive session, amid concerns over US H-1B visa fee hike and uncertainty over India-US trade talks.
The Sensex fell 57.87 points, or 0.07%, to close at 82,102.10, while the Nifty 50 settled 32.85 points, or 0.13%, lower at 25,169.50.
“Overall, we expect markets to remain firm, supported by a rebound in domestic demand driven by GST reforms and festive momentum,” 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 lower on Wednesday, tracking overnight losses on Wall Street after cautious comments from the US Federal Reserve Chair Jerome Powell. Japan’s Nikkei 225 fell 0.08%, while the Topix declined 0.35%. South Korea’s Kospi dropped 0.35%, while the Kosdaq fell 0.39%. Hong Kong’s Hang Seng Index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 25,190 level, a discount of nearly 65 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended lower on Tuesday, breaking a three-session string of record closing highs, after comments from Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average declined 88.76 points, or 0.19%, to 46,292.78, while the S&P 500 dropped 36.83 points, or 0.55%, to 6,656.92. The Nasdaq Composite closed 215.50 points, or 0.95%, lower at 22,573.47.
Nvidia share price fell 2.8%, Apple shares declined 0.64%, Amazon stock price plunged 3.04%, while Microsoft stock dropped 1.01%. Tesla stock price fell 1.93%, Boeing shares rose 2% and Micron Technology shares ended up 1.1%.
Jerome Powell Speech
US Federal Reserve Chair Jerome Powell said the central bank needed to continue balancing the competing risks of high inflation and a weakening job market in coming interest rate decisions, Reuters reported. “Near-term risks to inflation are tilted to the upside and risks to employment to the downside – a challenging situation,” Powell said.
H-1B Visa Rule
The Trump administration unveiled a proposal to revamp the H-1B visa selection process, prioritizing higher-skilled and better-compensated foreign workers. The move comes days after the White House announced a $100,000 annual fee for H-1B visas.
Dollar
The dollar hovered near its weakest level in close to a week with traders expecting two more US interest rate cuts this year. The dollar index, which measures the US currency against six major rivals, languished 97.230. The dollar eased 0.04% to 147.59 yen. The euro edged up slightly to $1.1816.
Gold Prices
Gold prices held steady near a record high as investors assessed US Fed Chair Jerome Powell’s cautious comments on interest rate cuts. Spot gold price held its ground at $3,762.05 per ounce. Bullion hit a record high of $3,790.82 on Tuesday. US gold futures for December delivery fell 0.6% to $3,794.50.
Crude Oil Prices
Crude oil prices rose for a second day as an industry report showed US crude inventories declined last week. Brent futures rose 0.40% to $67.90 a barrel, while US West Texas Intermediate crude futures gained 0.46% to $63.70.
(With inputs from Reuters)
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