The Indian stock market is expected to open higher on Tuesday, following gains in global markets. The domestic equity indices, Sensex and Nifty 50, are likely to see a positive start as Asian markets traded higher and the US stock market rallied overnight.
On Monday, the Indian stock market indices ended flat amid some profit booking at higher levels and mixed global cues. The Sensex closed at 80,424.68, down 0.02%, while the Nifty 50 settled at 24,572.65, down 0.13%.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., stated, „With Q1FY25 earnings now behind, domestic equities would take cues from global factors for direction. We expect Nifty to consolidate at higher levels with sectorial rotation. This week’s focus will be FOMC meeting minutes and Fed Chair Powell’s speech at the Jackson Hole Economic Symposium for indications of future interest rate policy.“
Asian markets traded higher on Tuesday, tracking an overnight rally on Wall Street and as China released key economic data. Japan’s Nikkei 225 rallied 1.1%, South Korea’s Kospi jumped 0.99%, and Hong Kong’s Hang Seng index futures indicated a higher opening.
The US stock market ended higher on Monday, led by tech stocks. The S&P 500 and the Nasdaq extended their winning streak to eight consecutive sessions, the longest in 2024. The Dow Jones Industrial Average rallied 0.58%, the S&P 500 rose 0.97%, and the Nasdaq Composite ended 1.39% higher.
China left benchmark lending rates unchanged at a monthly fixing on Tuesday, in line with market expectations. Crude oil prices traded lower on easing worries about a supply disruption in the Middle East, while gold prices held above the $2,500 mark.
The dollar hung near a seven-month low on Tuesday on bets the US central bank will start cutting interest rates from next month. US Treasury yields also declined, with the yield on the benchmark US 10-year note falling to 3.864%.
Overall, the global market cues are positive, and investors will be closely watching for any developments in the upcoming events such as the FOMC meeting minutes and Fed Chair Powell’s speech at the Jackson Hole Economic Symposium. It is advisable for investors to stay informed and consult with certified experts before making any investment decisions.