Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday following weakness in Asian markets.
Asian markets traded lower, while the US stock market ended higher last week, with the Nasdaq notching its best week in two months and second-best week of 2024.
This week, investors will closely monitor key stock market triggers, including the last set of Q2 results, developments in the ongoing Middle-East geopolitical tensions, trends in foreign fund flows, crude oil prices, global market cues, and domestic and global macroeconomic data.
On Friday, the Indian stock market benchmark indices ended lower weighed down by selling in index heavyweights.
The Sensex fell 55.47 points, or 0.07%, to close at 79,486.32, while the Nifty 50 settled 51.15 points, or 0.21%, lower at 24,148.20.
“Markets are expected to remain sideways on the back of mixed global factors and subdued quarterly results. However, there could be stock specific action on account of the last leg of Q2 earnings to be announced this week,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian markets traded lower on Monday after lower than expected China’s October inflation data.
Japan’s Nikkei 225 declined 0.14%, while the Topix was flat. South Korea’s Kospi dropped 0.57%, and the Kosdaq fell 0.58%. Hong Kong’s Hang Seng index futures indicated a weaker opening.
Gift Nifty was trading around 24,125 level, a discount of nearly 95 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
US stock market ended higher on Friday, registering its biggest weekly percentage gain in a year, after Donald Trump’s election victory.
The Dow Jones Industrial Average gained 259.65 points, or 0.59%, to 43,988.99, while the S&P 500 rose 22.44 points, or 0.38%, to 5,995.54. The Nasdaq Composite closed 17.32 points, or 0.09%, higher at 19,286.78.
For the week, the S&P 500 gained 4.66%, the Nasdaq rose 5.74%, and the Dow climbed 4.61%.
Trump Media stock price jumped more than 15%, Tesla shares rallied over 8%, Salesforce stock price rose 3.59%, while Airbnb shares declined 8.66%. US-listed Chinese companies, JD.com stock price plunged 6.99% and Alibaba share price dropped 5.94%.
US consumer sentiment rose to a seven-month high in early November, with a measure of households’ expectations for the future climbing to the highest in more than three years.
The University of Michigan's Consumer Sentiment Index climbed to 73.0 this month, the highest since April, from 70.5 in October. The result exceeded the median estimate among economists polled by Reuters for a reading of 71.0. The survey’s expectations index climbed nearly 6% to 78.5, the highest since July 2021.
China's consumer prices rose at the slowest pace in four months in October while producer price deflation deepened. The consumer price index (CPI) rose 0.3% from a year earlier last month, slowing from September’s 0.4% rise and marking the lowest since June, short of the 0.4% increase forecast in a Reuters poll of economists. On a month-on-month basis, China's CPI dropped 0.3%, versus an unchanged outcome in September and below a forecast 0.1% decline.
Producer prices slid 2.9% on year in October, deeper than the 2.8% fall the previous month and below an expected 2.5% decline. It marked the biggest drop in 11 months, Reuters reported.
Foreign portfolio investors (FPIs) extended their robust selling streak in the Indian stock market after the sell-off hit a record high in October. According to the National Securities Depository Ltd (NSDL) data, FPIs offloaded ₹19,994 crore worth of Indian equities, and the net outflow stood at ₹16,477 crore as of November 8, taking into account debt, hybrid, debt-VRR, and equities.
Bitcoin prices crossed $81,000 for the first time on optimism over the election of Donald Trump as US President and his embrace of digital assets along with the prospect of a Congress featuring pro-crypto lawmakers.
The US dollar started in a cautious mood on Monday ahead of US inflation data this week. The dollar index was a fraction firmer at 105.00, after gaining 0.6% last week mainly against the euro. The dollar was up 0.1% on the yen at 152.90, having been dragged off last week’s top of 154.70, Reuters reported. The dollar stood at 7.1970 yuan, having jumped 0.7% on Friday.
US Treasury yields fell on the long end of the curve on Friday. The benchmark US 10-year yield posted its largest weekly drop since early September. It was last down 2.7 basis points (bps) at 4.316%. US 30-year yields were down 5.7 bps at 4.486%. On the week, it slid 5.8 bps, its biggest weekly fall since early September as well, Reuters reported.
The bond market is closed on Monday for Veterans Day.
Crude oil prices steadied after the biggest one-day drop in almost two weeks after a soft outlook from China.
Brent crude fell 0.05% to $73.83 a barrel after falling by 2.3% on Friday, while US West Texas Intermediate declined 0.16% to $70.27.
(With inputs from Reuters)
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