Indian stock market: The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, following a rally in global markets, as investors cheered progress in the US-China trade talks.
Asian markets traded higher, with the Nikkei crossing 50,000-mark for the first time, while the US stock market rallied last week, with all three major Wall Street indexes recording all-time closing highs.
This week, investors will focus on key including the US Federal Reserve meeting, developments over the US-China trade deal and India-US trade deal, Q2 results, gold and silver prices, trends in FII flow, and key domestic and global macroeconomic data.
On Friday, the Indian stock market ended lower on profit taking, ending its six-day gaining streak.
The declined 344.52 points, or 0.41%, to close at 84,211.88, while the Nifty 50 settled 96.25 points, or 0.37%, lower at 25,795.15.
“We expect Indian equities to remain range bound, tracking global cues, upcoming Q2 results and macro-economic data. FII inflows and upbeat management commentaries could help sustain positive market momentum, though intermittent profit booking cannot be ruled out. Meanwhile, any progress on the India-US trade deal front, could further uplift investor sentiments,” 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 optimism over US-China trade talks. Japan’s benchmark rallied 2.02%, crossing the 50,000 mark for the first time, while the Topix gained 1.61%. South Korea’s Kospi jumped 1.83%, while the Kosdaq rose 0.72%. Hong Kong’s Hang Seng Index futures indicated a stronger opening.
Gift Nifty Today
Gift Nifty was trading around 25,936 level, a premium of nearly 121 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
US stock market ended higher on Friday, with all three major stock indexes recording all-time closing highs, after cooler-than-expected inflation data and upbeat corporate earnings lifted sentiment.
The rallied 472.51 points, or 1.01%, to 47,207.12, while the S&P 500 gained 53.25 points, or 0.79%, to 6,791.69. The Nasdaq Composite closed 263.07 points, or 1.15%, higher at 23,204.87.
Nvidia share price gained 2.25%, Advanced Micro Devices shares jumped 7.63%, Apple stock price rose 1.25%, while Alphabet shares advanced 2.7%. Tesla stock price dropped 3.40%, Ford shares jumped 12.2%, Coinbase Global shares surged 9.8% and Deckers Outdoor share price plunged 15.2%.
US Inflation
US inflation increased slightly less than expected in September. The Consumer Price Index (CPI) rose 0.3% last month after climbing 0.4% in August. In the 12 months through September, increased 3.0% after advancing 2.9% in August. Economists polled by Reuters had forecast a monthly increase in the CPI of 0.4% and a 3.1% rise on a YoY basis.
US-China Trade Deal
Top trade negotiators of the US and China said they had come to terms on a framework for a ahead of the meeting of Presidents Donald Trump and Xi Jinping. “We are moving forward to the final details of the type of agreement that the leaders can review and decide if they want to conclude together,” US trade representative Jamieson Greer said at ASEAN Summit.
India-US Trade Deal
India’s Ambassador to the United States, Vinay Mohan Kwatra, discussed a mutually beneficial trade agreement, energy security and oil and gas trade with Jeanne Shaheen, Ranking Member of the Senate Foreign Relations Committee.
Dollar
The dollar index, which measures the greenback against select peers, was little changed at 98.94. The US dollar strengthened 0.2% to 153.12 against the yen, the highest since October 10. The euro was steady at $1.1628, while the Sterling strengthened 0.05% to $1.3316.
Crude Oil Prices
Crude oil prices rose after US and Chinese officials sketched out a trade-deal framework. Brent crude futures rose 0.41% to $66.23 a barrel, while US West Texas Intermediate crude futures gained 0.21% to $61.63.
(With inputs from Reuters)
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