Indian Equity Market: Indian stock market indices Sensex and Nifty 50 are expected to open flat on Tuesday, following a broadly positive performance in other global equity markets.
Asian markets were mostly higher, while US stocks ended mixed with the S&P 500 and Nasdaq closing at record highs.
Market participants will be closely watching Federal Reserve Chairman Jerome Powell’s semi-annual testimony before U.S. Senate and House of Representatives committees on Tuesday and Wednesday, along with the U.S. Consumer Price Index, due for release on Thursday, and the Producer Price Index, due for release on Friday.
According to CME’s FedWatch, traders see more than a 75% chance of at least 25 basis points of rate cuts by September, up from 60% last week.
Indian equity market major indices ended volatile trade flat on Monday amid lack of any major catalyst and continued profit booking at higher levels.
The Sensex index fell 36.22 points or 0.05 percent to close at 79,960.38, while the Nifty 50 index fell 3.30 points or 0.01 percent to close at 24,320.55.
“In the absence of any fresh catalysts, the market remained range bound throughout the day and ended marginally weaker due to profit booking in some banking, telecom and real estate stocks. Weak Asian indices also weighed on sentiment and expensive valuations are likely to keep investors cautious for some time to come,” said Prashant Tapse, senior vice president (research) at Mehta Equities Limited.
Key global market indications on Sensex today include:
Asian Market
Asian markets also rose on Tuesday, following an overnight rally on Wall Street.
Japan’s Nikkei rose 1% and the Topix added 0.27%. South Korea’s KOSPI rose 0.3%. Hong Kong’s Hang Seng Index futures opened higher.
Give the gift of Nifty today
GIFT Nifty was trading around 24,387 levels, a premium of seven points over the previous close of Nifty futures, signalling a flat start for the Indian equity market index.
Wall Street
U.S. stocks ended mostly higher on Monday, with the S&P 500 and Nasdaq closing at record highs ahead of the latest inflation data and comments from Fed Chairman Powell.
The Dow Jones Industrial Average fell 0.08% to 39,344.79, while the S&P 500 rose 0.10% to 5,572.85. The Nasdaq rose 0.28% to close at 18,403.74, hitting a record high for the fifth consecutive day.
Nvidia shares rose nearly 2%, Intel shares surged more than 6%, and Advanced Micro Devices shares rose 4%. Citigroup shares rose 1.1%, while Wells Fargo shares fell 1%. Paramount Global shares fell 5.3%, and Boeing shares rose 0.55%.
Government bond yields, dollar-denominated
The US dollar strengthened but Treasury yields were mixed as investors awaited U.S. central bank guidance and June inflation data later this week.
The dollar index, which measures the greenback’s relative strength against a basket of currencies including the yen and euro, rose 0.07% to 105.02.
The yield on the benchmark 10-year U.S. Treasury note rose 0.5 basis points to 4.278%, while the yield on the 30-year note fell 0.6 basis points to 4.4628%. The yield on the two-year note rose 3.4 basis points to 4.6327%.
Oil prices
Oil prices have stabilised after two days of declines as the worst of Storm Beryl has passed.
Brent crude fell 0.04% to $85.72 a barrel after dropping around 2% in the previous two sessions, while West Texas Intermediate was down 0.04% to $82.30 a barrel.
Gold Price
Gold prices traded slightly higher on Tuesday. Spot gold rose 0.16% to $2,362.86 an ounce. U.S. gold futures rose 0.26% to $2,369.65.
(Quoted from Reuters)
Disclaimer: The views and recommendations expressed above are those of the individual analysts or brokerage firms and not that of Mint. We recommend that you check with a qualified professional before making any investment decisions.
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