Indian stock market: Domestic equity indices Sensex and Nifty 50 are expected to open higher on Tuesday on positive cues from global markets.
US stocks ended lower overnight while Asian markets closed higher on rising expectations that the US Federal Reserve is likely to cut interest rates this year.
Traders are currently pricing in a 46 basis point rate cut by the Fed by the end of 2024, with the first rate cut expected in September or November, according to LSEG’s interest rate probability app.
Indian stock market benchmark indices ended mixed on Monday amid higher volatility.
The Sensex rose 17.39 points or 0.02% to close at 73,895.54, while the Nifty 50 fell 33.15 points or 0.15% to close at 22,442.70.
“India’s VIX index has risen more than 70% in the past eight trading sessions from around 10am to a 52-week high around 5pm, reflecting continued global uncertainty and the outlook for next month. “Sabah election results indicate heightened investor tension.”Therefore, the market is likely to remain in a broader range with stock-specific movements in the short term.” said Siddhartha Khemka, Head of Retail Research, Oswal Financial Services.
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Here are today’s key global market cues for Sensex.
asian market
Asian markets rose on Tuesday following gains on Wall Street overnight.
Japan’s Nikkei Stock Average rose 0.96% and TOPIX rose 0.61%. South Korea’s Kospi rose 1.6% and Kosdaq rose 1.08%. Hong Kong’s Hang Seng Index futures opened slightly lower.
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Gift Nifty is trading around 22,592 levels, at a premium of nearly 40 points from the previous closing price of Nifty futures, indicating a strong start for the Indian stock market index.
wall street
The US stock market closed higher on Monday, marking the third straight session of gains.
The Dow Jones Industrial Average rose 176.59 points, or 0.46%, to 38,852.27, and the S&P 500 rose 52.95 points, or 1.03%, to 5,180.74. The Nasdaq Composite Index rose 192.92 points (1.19%) to end at 16,349.25.
Among stocks, Arm Holdings rose 5.2%, Micron Technology stock rose 4.7%, Advanced Micro Devices stock rose 3.4%, and Super Micro Computer stock rose 6.1%. Paramount Global stock rose 3.1%.
Tyson Foods stock fell 5.7%, and Spirit Airlines stock fell 9.7%, hitting record lows.
us federal reserve system
According to Reuters, Richmond Fed President Thomas Barkin said the current level of interest rates should cool the economy enough to bring inflation back to the central bank’s 2% target, and that a strong job market has encouraged officials to He said he would be given time to wait. Barkin, who is a voter on interest rate policy this year, added that the “data whiplash” on inflation supports the Fed’s deliberative policy on interest rates.
New York Fed President Williams said that although interest rate cuts will occur, monetary policy is currently in a very good position.
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Japanese service PMI
Japan’s service sector activity grew in April at the fastest pace in eight months, according to a private survey. The final Purchasing Managers Index (PMI) for au Jibun Bank services rose to 54.3 last month, the highest level since August 2023, and slightly up from 54.1 in March.
oil price
According to Reuters, oil prices rose after Israel attacked Rafah in the Gaza Strip while ceasefire talks with Hamas continued without resolution. Brent crude oil futures rose 0.46% to $83.71 per barrel, while US West Texas Intermediate (WTI) crude oil futures rose 0.59% to $78.94 per barrel.
USD
The U.S. dollar index against six major currencies, including the yen, pound and euro, was little changed at 105.13, after falling to 104.52 on Friday.
(Information provided by Reuters)
Disclaimer: The views and recommendations above are those of individual analysts or brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.
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