Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday following weakness in global markets.
Asian markets traded lower, while the US stock market slipped last week, with the S&P 500 and Nasdaq notching their biggest one-day losses in two weeks.
This week, investors will closely monitor key stock market triggers, including Maharashtra Assembly elections, flows of foreign funds, Middle-East geopolitical tensions, US bond yields, the US dollar, trends in crude oil prices, global market cues, and other domestic and global macroeconomic data.
Indian markets were closed on Friday on account of Guru Nanak Jayanti.
On Thursday, the Indian stock market indices ended lower, extending losses for the sixth consecutive session.
The Sensex declined 110.64 points, or 0.14%, to close at 77,580.31, while the Nifty 50 settled 26.35 points, or 0.11%, lower at 23,532.70.
“Nifty 50 ended lower for second week in a row falling 2.55% and fell for 6 out of the past 7 weeks as earnings from India Inc. continued to weigh on investors’ sentiment at a time when increase in safe–haven assets like the dollar index, and US treasury yields weighed on risk assets like emerging markets’ equities. Nifty could stay in the 23,338 – 24,099 band in the coming week with a higher chance of a bounce beginning soon,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
Here are key global market cues for Sensex today:
Asian Markets
Asia markets traded mostly lower on Monday ahead of key economic data in the region this week, including China’s loan prime rate and Japan inflation data.
Japan’s benchmark Nikkei 225 declined 1.16%, while the Topix fell 0.65%. South Korea’s Kospi rallied 1.06%, and the Kosdaq fell 0.62%. Hong Kong’s Hang Seng index futures indicated a stronger opening.
Gift Nifty Today
Gift Nifty was trading around 23,495 level, a discount of nearly 105 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 Friday amid concerns about slower interest-rate cuts by the US Federal Reserve.
The Dow Jones Industrial Average plunged 305.87 points, or 0.70%, to 43,444.99, while the S&P 500 declined 78.55 points, or 1.32%, to 5,870.62. The Nasdaq Composite ended 427.53 points, or 2.24%, lower at 18,680.12.
For the week, the S&P 500 fell 2.08%, the Nasdaq declined 3.15%, and the Dow fell 1.24%.
Applied Materials shares tumbled 9.2%, Moderna share price dropped 7.3% and Pfizer stock price fell 4.7%. Monster Beverage stock cracked 7%, Lamb Weston shares declined 6% and Keurig Dr Pepper dropped 5%.
US Fed Chair Jerome Powell
The US Federal Reserve does not need to rush to cut interest rates due to the ongoing economic growth, a solid job market, and inflation that remains above its 2% target, said Fed Chair Jerome Powell. According to Powell, the Fed policymakers believe inflation is progressing toward a “sustainable path to 2%” that will enable the US central bank to move monetary policy “over time to a more neutral setting” that isn’t meant to slow the economy, Reuters reported.
US Retail Sales
US retail sales increased slightly more than expected in October. Retail sales rose 0.4% last month after an upwardly revised 0.8% advance in September. Economists polled by Reuters had forecast retail sales would climb 0.3% after a previously reported 0.4% gain in September.
CLSA Hikes India Allocation
CLSA increased its India allocation to 20% overweight, while slashing its exposure to China in a tactical reversal. CLSA said India appears to be among the least exposed regional markets to Trump’s adverse trade policy. Moreover, so long as energy prices remain stable, India may offer a relative oasis of FX stability in an era of a strengthening US dollar. According to CLSA, domestic appetite remains strong, offsetting foreign jitters, and valuation, though pricey, is now a little more palatable.
Japan Machinery Orders
Japan’s core machinery orders unexpectedly fell in September from the previous month. The orders dropped 0.7% in September MoM, confounding economists’ median estimates for a 1.9% rise and down for the second straight month. On a YoY, core orders decreased 4.8%, versus an expected rise of 2.2%.
Oil Prices
Crude oil prices traded lower amid concerns over higher supply and the weak demand outlook in China.
Brent crude prices fell 0.13% to $70.95 a barrel after falling 3.8% last week, while West Texas Intermediate was down 0.31% at $66.81.
Dollar
The US dollar was looking to extend its bull run on Monday led by higher Treasury yields and a more restrained outlook for US rate cuts. Against a basket of currencies the dollar held at 106.730, having touched a one-year top of 107.07 on Friday, Reuters reported. The index climbed 1.6% over the week, marking six weeks of gains in the last seven.
Samsung Share Buyback
Samsung Electronics Co. shares surged Monday after the company announced a share buyback plan of about 10 trillion won ($7.2 billion) over the next year. Samsung will buy back about 3 trillion won of shares starting Monday and up till February 2025, all of which it will cancel. Samsung stock price jumped as much as 6.7% in Seoul trading, adding to Friday’s 7.2% rally ahead of the news.
(With inputs from Reuters)
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