Indian Stock Market Anticipates Positive Opening Amid Global Rally and Trade Deal Momentum
The Indian stock market benchmark indices, Sensex and Nifty 50, are projected to commence trading on a higher note this Tuesday, drawing strength from optimistic signals emanating from global financial markets. This upward trajectory follows a robust performance in Asian markets and a significant overnight rally on Wall Street, primarily fueled by advances in technology stocks.
Previous Session Recap and Market Outlook
On Monday, the Indian equity markets concluded on a positive footing, buoyed by the announcement of a preliminary framework for a trade agreement with the United States. The Sensex surged by 485.35 points, equivalent to a 0.58% increase, settling at 84,065.75. Simultaneously, the Nifty 50 climbed 173.60 points, marking a 0.68% rise, to close at 25,867.30.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd., provided insights into the market's direction: "We anticipate the market to sustain its gradual upward movement, with stock-specific actions likely to dominate as the third-quarter earnings season approaches its conclusion. Several companies are slated to announce results this week, while US export beneficiaries—bolstered by the trade deal—and metal companies are expected to remain in the spotlight."
Key Global Market Cues Influencing Sensex Today
Asian Markets: Asian markets traded higher, mirroring the overnight rally on Wall Street. Japan's Nikkei advanced by 1.52%, and the Topix increased by 1.08%, both achieving new record highs. South Korea's Kospi gained 1.21%, while the Kosdaq rose 1.25%. Hong Kong's Hang Seng index futures pointed towards a higher opening, reinforcing the positive sentiment across the region.
Gift Nifty Today: The Gift Nifty was trading at approximately 25,987 levels, representing a premium of nearly 72 points compared to the Nifty futures' previous close. This indicator suggests a favorable start for the Indian stock market indices, reflecting investor confidence and anticipation of continued gains.
Wall Street Performance: The US stock market ended higher on Monday, driven by notable gains in technology stocks. The Dow Jones Industrial Average edged up by 20.20 points, or 0.04%, to 50,135.87. The S&P 500 increased by 32.52 points, or 0.47%, reaching 6,964.82. The Nasdaq Composite outperformed, closing 207.46 points higher, a 0.90% gain, at 23,238.67.
Key technology stocks exhibited mixed but overall positive movements:
- Nvidia stock price advanced by 2.50%.
- Microsoft shares rose by 3.13%.
- Advanced Micro Devices (AMD) share price rallied 3.63%.
- Apple shares experienced a decline of 1.17%.
- Tesla stock price rallied 1.51%.
- Oracle shares jumped significantly by 9.6%.
Commodities and Currency Movements
Gold Prices: Gold and silver prices retreated after two consecutive sessions of gains, as the US dollar strengthened from a more than one-week low. Spot gold price fell by 1% to $5,016.56 per ounce, while US gold futures for April delivery decreased by 0.8% to $5,041.60 per ounce. Spot silver price declined by 2.5% to $81.31 per ounce, following a nearly 7% surge in the previous session.
Crude Oil Prices: Crude oil prices dipped after a two-day advance. Brent crude oil price dropped by 0.54% to $68.64 a barrel, and US West Texas Intermediate (WTI) crude futures fell by 0.65% to $63.94.
US Dollar: The US dollar exhibited weakness in the currency markets. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell by 0.8% to 96.83. The euro appreciated by 0.85% to $1.1917, while against the Japanese yen, the dollar declined by 0.91% to 155.77.
This analysis incorporates inputs from Reuters, providing a comprehensive overview of the factors shaping the Indian stock market's trajectory today.
