The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday, despite mixed global market cues, on hopes of a US-China trade deal and US Federal Reserve interest rate cut this week.
Asian markets traded lower, while the US stock market ended higher overnight, with all three Wall Street main indices posting record closing highs for the second day in a row.
On Monday, the Indian stock market ended sharply higher, with both the benchmark indices gaining over half a percent each.
The Sensex rallied 566.96 points, or 0.67%, to close at 84,778.84, while the Nifty 50 settled 170.90 points, or 0.66%, higher at 25,966.05.
“Firm global cues coupled with global factors related to US-China closer to working out a trade deal and sharp correction in precious metal prices fuelled extended rally in domestic equities. With current month expiry later this week, investors are also covering their positions, which is also keeping markets in good stead,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Tuesday as investors watched out for a meeting between the US President Donald Trump and the new Japanese Prime Minister Sanae Takaichi. Japan’s Nikkei 225 fell 0.27%, while the Topix declined 0.61%. South Korea’s Kospi dropped 1.2%, while the Kosdaq fell 0.6%. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 26,066 level, a premium of nearly 53 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended higher on Monday, with Wall Street’s main indexes posting record closing highs for the second day in a row, on hopes of a US-China trade deal and widely expected Fed rate cut.
The Dow Jones Industrial Average rallied 337.47 points, or 0.71%, to 47,544.59, while the S&P 500 gained 83.47 points, or 1.23%, to 6,875.16. The Nasdaq Composite closed 432.59 points, or 1.86%, higher at 23,637.46.
Nvidia share price rose 2.81%, Tesla stock price rallied 4.31%, AMD shares gained 2.7%, Intel stock advanced 3.29%, while Apple share price gained 2.28%. Qualcomm share price jumped 11%, Critical Metals shares declined 13.7%, while NioCorp Developments stock price dropped 11.5%.
Trump-Takaichi Meeting
US President Donald Trump met Japan’s new prime minister, Sanae Takaichi, in Tokyo for talks on trade and security, a week after the hardline conservative became Japan’s first female leader and vowed to accelerate a military buildup, Reuters reported.
China-ASEAN FTA
The Southeast Asian bloc ASEAN and China signed an upgrade to their free trade agreement, expected to include sections on digital and green economy and other new industries.
Gold Prices
Gold prices hovered near their lowest in more than two weeks. Spot gold price was flat at $3,981.67 per ounce, after dropping more than 3% in the previous session to its lowest level since October 10. US gold futures for December delivery lost 0.6% to $3,996.50 per ounce.
US Dollar
The US dollar index eased 0.1% to 98.666 , but remained well within the recent trading range. The dollar restrained at 152.35 yen, having stopped short of the recent 153.29 peak overnight. The euro was up at $1.1659.
Crude Oil Prices
Crude oil prices traded lower .Brent crude oil fell 0.02% to $65.61 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.10% to $61.25.
(With inputs from Reuters)
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