Indian stock market: Sensex and Nifty 50 expected to open on subdued note following mixed global cues
The Indian stock market is set to open on a subdued note on Tuesday, with the domestic equity indices, Sensex and Nifty 50, expected to follow mixed global market cues. Asian shares traded flat, while the US stock market was closed on Monday for a holiday, leaving investors to gauge comments from European Central Bank officials and other key economic data.
On Monday, the benchmark indices ended flat after hitting fresh record highs in intraday trade, as profit booking at higher levels tempered gains. The Sensex closed at 75,390.50, down 19.89 points, or 0.03%, while the Nifty 50 settled at 22,932.45, down 24.65 points, or 0.11%.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., commented on the cautious trading atmosphere, stating, “Amidst the celebration, there looms a question regarding the sustainability of this bullish trend. The previous day unfolded with cautious trading, anticipating heightened volatility in the near term. With Nifty closing slightly lower, the market sentiment underscores a prevailing sense of caution.”
Key global market cues for Sensex today include Asian markets trading range-bound after ECB officials hinted at possible rate cuts, with Japan’s Nikkei 225 and Topix flat, South Korea’s Kospi marginally higher, and Hong Kong’s Hang Seng index futures indicating a slightly weaker opening. Gift Nifty was trading around 23,020 level, suggesting a flat-to-positive start for Indian stock market indices.
US markets were closed on Monday, but futures on the Nasdaq 100 rose to a record high, while European markets gained marginally. The US stock market will shift to a T+1 trading cycle from Tuesday, shortening the settlement cycle for securities transactions. ECB officials have advocated for an interest rate cut next week, with Olli Rehn emphasizing the need for monetary policy easing.
The People’s Bank of China announced a 5 billion yuan 3-month central bank bill swap, while crude oil prices rose due to escalating geopolitical tensions in the Middle East. The US dollar eased slightly, holding tight ranges ahead of key inflation data from major economies this week.
Investors are advised to consult certified experts before making any investment decisions. Stay tuned for more updates on the Indian stock market and global financial developments.
