Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, following gains in global markets.
Asian markets advanced, while the US stock market rallied overnight as investors increased bets on a US Fed rate cut.
On Tuesday, the Indian stock market extended losses for a third consecutive session. The Sensex fell 313.70 points, or 0.37%, to close at 84,587.01, while the Nifty 50 settled 74.70 points, or 0.29%, lower at 25,884.80.
“Persistent outflows, caution ahead of the US Federal Reserve meeting next month and uncertainty around progress on a potential US–India trade deal is likely to keep traders guarded,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Wednesday, following an overnight rally on Wall Street on rising US Fed rate cut bets. Japan’s Nikkei 225 rallied 1.5% and the Topix index rose 0.9%. South Korea’s Kospi gained 1.08%, while Kosdaq added 0.64%. Hong Kong’s Hang Seng Index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around the 26,149 level, a premium of nearly 93 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
The US stock market ended higher on Tuesday, amid rising expectations of a Federal Reserve interest rate cut.
The Dow Jones Industrial Average rallied 664.18 points, or 1.43%, to 47,112.45, while the S&P 500 gained 60.77 points, or 0.91%, to 6,765.89. The Nasdaq Composite closed 153.59 points, or 0.67%, higher at 23,025.59.
Nvidia share price fell 2.6%, AMD shares plunged 4.15%, Alphabet stock price rose 1.6%, Meta Platforms shares gained 3.8% and US-listed shares of Alibaba slipped 2.3%. Kohl’s shares jumped 42.5% and Abercrombie & Fitch stock price surged 37.5%.
Russia-Ukraine Peace Deal
Ukraine supports the essence of a US-brokered peace framework after talks in Geneva, Reuters reported. A Ukrainian official said that unresolved sensitive issues still require discussion between President Volodymyr Zelenskyy and US President Donald Trump.
US-China Trade Talks
US President Donald Trump said that he pressed Chinese President Xi Jinping to accelerate and increase Beijing’s purchases of US goods during a phone call on Monday, and the Chinese leader had “more or less agreed.”
India – European Union FTA
India and the European Union reaffirmed the shared ambition to conclude negotiations on the Free Trade Agreement (FTA) by the end of this year and to accelerate talks on the Investment Protection Agreement and the Agreement on Geographical Indications.
US Wholesale Inflation
US wholesale inflation rose in September from a month earlier. The US producer price index rose 0.3% from a month earlier after a 0.1% decline in August. The PPI rose 2.7% from the same month last year.
US Retail Sales
US retail sales increased less than expected in September. Retail sales rose 0.2% after an unrevised 0.6% gain in August. Economists polled by Reuters had forecast a 0.4% rise in retail sales following a previously reported 0.6% increase in August.
US Consumer Confidence
US consumer confidence sagged in November. The Conference Board said its consumer confidence index dropped to 88.7 this month from an upwardly revised 95.5 in October. Economists polled by Reuters had forecast the index edging down to 93.4 from the previously reported 94.6 in October.
Gold Prices
Gold prices traded higher on optimism over a possible December interest rate cut by the Federal Reserve. Spot gold price rose 0.2% to $4,136.59 per ounce, while US gold futures for December delivery fell 0.1% to $4,134.00 per ounce.
(With inputs from Reuters)