Indian stock market: 8 key things that changed for market over weekend- Gift Nifty, yen at three-month low to oil prices

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open on a flat note Monday following largely mixed cues from global markets.

Asian markets traded higher, with the Japanese yen falling to three-month lows, while the US stock market ended mixed last week.

While the US dollar spiked, crude oil prices slumped amid subsiding fears of escalating Israel-Iran conflict.

This week, investors will monitor key stock market triggers, including the next set of Q2 results 2024, the monthly derivatives expiry, geopolitical developments in the Middle-East, trends in foreign fund flows, crude oil prices, US Presidential Elections, and other global and domestic macroeconomic data.

On Friday, the Indian stock market benchmark indices witnessed a broad-based sell-off, with the Sensex ending below the crucial 80,000-mark.

The Sensex plunged 662.87 points, or 0.83%, to close at 79,402.29, while the Nifty 50 settled 218.60 points, or 0.9%, lower at 24,180.80.

“The dismal Q2 earnings so far has aggravated the investors’ woes while persistent FII selling continued to create havoc in the market. Despite the Chinese stimulus announcement, falling crude oil prices is an indication that major economies continue to feel the slowdown pinch,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher with the Japanese markets leading gains as the yen dropped after the country’s election results.

The Nikkei gained 1.79%, while the Topix rose 1.38%. South Korea’s Kospi added 0.51%, while the Kosdaq rallied 0.94%. Hong Kong’s Hang Seng index opened lower.

Gift Nifty Today

Gift Nifty was trading around 24,223 level, a premium of nearly 10 points from the Nifty futures’ previous close, indicating a flat-to-positive start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Friday, with gains in megacap stocks supporting the Nasdaq index.

The Dow Jones Industrial Average fell 259.96 points, or 0.61%, to 42,114.40, while the S&P 500 eased 1.74 points, or 0.03%, to 5,808.12. The Nasdaq Composite closed 103.12 points, or 0.56%, higher at 18,518.61.

Tesla stock price gained 3.36%, while Nvidia shares rose 0.8%, briefly overtaking Apple as the world’s most valuable company based on its market capitalisation. Amazon, Apple and Microsoft stocks also rose.

Goldman Sachs shares fell 2.27%, and McDonald’s stock declined 2.97%. New York Community Bancorp share price dropped 8.26% and Capri Holdings slumped 48.89%, while Tapestry shares jumped 13.54%.

PBOC

The People’s Bank of China (PBOC) announced it had activated its open market outright reverse repo operations facility and would use it to trade with primary dealers in open market operations on a monthly basis.

Japan Elections

The make-up of Japan's future government was in flux on Monday after voters punished Prime Minister Shigeru Ishiba’s ruling coalition, leaving no party with a clear mandate to lead the world's fourth-largest economy, Reuters reported. The country’s Liberal Democratic Party lost its majority in the lower house after elections on Sunday.

Oil Prices

Crude oil prices tumbled after Israel’s weekend strike on Iran bypassed oil or nuclear targets.

Brent crude oil declined 4.48% to $72.64 a barrel, while the US West Texas Intermediate (WTI) crude futures plunged 4.63% to $68.46.

Gold Price Today

Gold prices declined pressured by a stronger US dollar. Spot gold fell 0.5% to $2,732.90 per ounce, while US gold futures declined 0.33% to $2,745.30.

Currency Market

The US dollar index climbed 3.6% during October so far, its sharpest monthly rise since April 2022. The yen touched a three-month low on Monday. On the dollar, the yen hit its weakest since late July at 153.3 and it touched the same milestone at 165.36 to the euro, Reuters reported.

At $1.0795 the euro was steady but down more than 3% on the month. Sterling bought $1.2961 for a 3.1% drop through October so far.

(With inputs from Reuters)

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