The Indian stock market is a dynamic and ever-changing entity that is influenced by a myriad of factors, both domestic and global. The domestic equity market indices, Sensex and Nifty 50, are key indicators of the health and performance of the Indian stock market. On Tuesday, these indices are expected to open on a muted note, in line with weak global market cues.
Asian markets have been trading lower, with investors keeping a close eye on China’s industrial profits data for July. Japan’s Nikkei 225 and South Korea’s Kospi have both seen declines, while Hong Kong’s Hang Seng index futures indicate a lower opening. This cautious sentiment in Asian markets is likely to have an impact on the opening of the Indian stock market.
On Monday, the Indian stock market indices ended with strong gains, with the Nifty 50 reclaiming the 25,000 level. The Sensex rallied over 600 points, closing at 81,698.11, while the Nifty 50 settled at 25,010.60. This positive momentum was driven by indications from the US Federal Reserve that interest rate cuts are likely to begin from its September meeting.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., commented on the market’s performance, stating that Indian equities celebrated the festive day by regaining the 25k mark. He expects the momentum to continue towards new highs, with broader market participation. This week, the market will focus on India and US GDP data, derivatives monthly expiry, and other global cues.
In global markets, the US stock market ended mixed on Monday, with the Dow Jones posting a record close. The Dow Jones Industrial Average rose, while the S&P 500 and Nasdaq saw declines. Tech stocks like Nvidia and Tesla experienced drops, while companies like Caterpillar and American Express saw gains. Gold prices remained steady near record highs, driven by safe-haven demand, while oil prices traded lower after a jump in the previous session.
US Treasury yields saw modest changes on Monday, with the benchmark 10-year Treasury note showing a slight gain. The US dollar rallied from an eight-month low, gaining against major currencies. Overall, the global market cues are mixed, with investors closely monitoring economic data and geopolitical developments.
In conclusion, the Indian stock market is poised for a muted opening on Tuesday, influenced by weak global market cues. Investors should stay informed about key developments in both domestic and global markets to make informed investment decisions. It is advisable to seek advice from certified experts before making any investment decisions.