Indian stock market: Domestic stock market indexes Sensex and Nifty 50 extend losses on Tuesday, likely to open lower amid weak cues in global markets due to growing concerns over rising Iran-Israel conflict is high.
Asian markets fell and US stocks ended in deep red overnight as Israel is expected to respond to the weekend’s attack on Iran.
On Monday, Indian stock market indexes ended down more than 1% each for the second consecutive day, with selling across sectors affected by rising tensions in the Middle East due to the Iran-Israel conflict.
The Sensex plunged 845.12 points or 1.14 per cent to close at 73,399.78 and the Nifty 50 fell 246.90 points or 1.1 per cent to close at 22,272.50.
“We expect domestic markets to experience near-term headwinds amid heightened volatility. We continue to see sector- and stock-specific movements due to the start of earnings season and poll pledges by several political parties. Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
Also read: Buy/Sell: Vaishali Parekh recommends 3 stocks to buy today — April 16
Here are today’s key global market cues for Sensex.
asian market
Asian markets widened their losses on Tuesday, falling on key Chinese economic indicators and escalating geopolitical tensions in the Middle East.
Japan’s Nikkei Stock Average fell 1.5%, and the TOPIX fell 1.04%. South Korea’s Kospi fell 1.31%, and the Kosdaq fell 0.86%. Hong Kong’s Hang Seng Index futures showed a weak start.
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Gift Nifty is trading around 22,185 levels, at a discount of nearly 180 points from the previous closing price of Nifty futures, indicating a soft start for the Indian stock market index.
wall street
U.S. stock market indexes ended sharply lower on Monday on concerns about a spike in U.S. Treasury yields and rising geopolitical tensions between Iran and Israel.
Tech mega-cap stocks continued to fall as the Nasdaq 100 fell 1.5% and the S&P 500 fell below the 5,100 level.
The Dow Jones Industrial Average fell 248.13 points, or 0.65%, to 37,735.11, and the S&P 500 index fell 61.59 points, or 1.20%, to 5,061.82. The NASDAQ Composite Index fell 290.07 points (1.79%) to end at 15,885.02.
Among stocks, Apple stock fell 2.19%, Tesla stock fell 5.6%, and Salesforce stock fell 7.28%. Nvidia stock fell 2.5%, and Microsoft stock fell 2%.
Goldman Sachs shares rose 2.92% after first-quarter earnings beat Wall Street expectations, while M&T Bank shares rose 4.74% after forecasts for better-than-expected annual net interest income (NII). Shares of brokerage firm Charles Schwab rose 1.71%.
Read here: Goldman Sachs stock soars more than 5% as first-quarter profit beats Wall Street expectations
US retail sales
U.S. retail sales in March exceeded expectations on the back of a surge in receipts at online retailers, according to a report from the Commerce Department. Retail sales rose 0.7% last month, but the February data has been revised upward to show sales rebounded 0.9% instead of the previously announced 0.6%, the largest increase in more than a year. Economists polled by Reuters had expected retail sales to rise 0.3%. Sales in March increased by 4.0% compared to the same month last year.
Government bond yield
Benchmark 10-year Treasury yields hit a five-month high on Monday after March retail sales beat expectations. The 10-year Treasury yield rose 12.9 basis points (bp) to 4.628%, and the 30-year Treasury yield rose 13.5 basis points to 4.739%. The yield on two-year US government bonds rose 5.3 basis points to 4.935%.
india trade deficit
India’s goods trade deficit narrowed nearly 17% in March to $15.6 billion, the lowest in 11 months, from $18.71 billion in February, according to Commerce Department data. The deficit in March was higher than the $18.55 billion deficit expected by economists, according to a Reuters poll.
Read here: India’s goods trade deficit narrows to $15.6 billion in March, the lowest in 11 months
oil price
Oil prices rose amid heightened tensions in the Middle East after Israel announced its response to attacks by Iran.
Brent crude oil rose 0.54% to $90.59 per barrel, and US West Texas Intermediate (WTI) crude oil futures rose 0.57% to $85.90.
Yen hits 34-year low
The dollar hit its highest against a basket of currencies on Monday since early November, while the yen fell to its lowest since 1990, according to Reuters. The dollar index reached 106.23, its highest since November 2, and was last up 0.24% at 106.20. The Japanese yen hit a 34-year low of 154.45 yen against the dollar overnight.
Japan’s finance minister warned that Japan is ready to take any measures in the foreign exchange market if necessary.
(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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