Indian Stock Market: Indian equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday, influenced by a downturn in Asian markets.
Last week, Asian markets trended lower while the U.S. stock market gained, with the Nasdaq marking its best week in two months and second-best of 2024. This week, investors will focus on several key market drivers, including the last round of Q2 earnings, Middle East geopolitical tensions, foreign fund flows, crude oil prices, and domestic/global economic data.
On Friday, Indian markets closed lower, with the Sensex down by 55.47 points (0.07%) at 79,486.32 and the Nifty 50 down by 51.15 points (0.21%) at 24,148.20. “Markets are expected to remain sideways due to mixed global cues and muted quarterly results, though specific stocks could see activity due to Q2 earnings announcements,” noted Siddhartha Khemka from Motilal Oswal Financial Services Ltd.
Global Market Insights:
- Asian Markets: Asian indices were down, with Japan’s Nikkei 225 and South Korea’s Kospi trading lower after China’s inflation data for October fell below expectations.
- Gift Nifty: Trading at a 95-point discount, suggesting a soft opening for Indian indices.
- Wall Street: The U.S. markets closed higher on Friday with the Dow, S&P 500, and Nasdaq all recording significant weekly gains. Stocks like Trump Media and Tesla saw notable rises.
- US Consumer Sentiment: Early November data from the University of Michigan showed consumer sentiment reached a seven-month high.
- China Inflation: Consumer prices in China rose at their slowest in four months in October, with deepening deflation in producer prices.
- Foreign Portfolio Investor (FPI) Activity: FPIs continued their selling streak, recording net outflows in the Indian stock market.
- Bitcoin: Bitcoin surged to over $81,000, bolstered by pro-crypto sentiment following the U.S. election outcome.
- Currencies: The dollar strengthened slightly, with markets cautiously awaiting U.S. inflation data.
- US Treasury Yields: Long-term Treasury yields declined, with the 10-year yield seeing its largest weekly drop since early September.
- Oil Prices: Crude oil prices steadied after a sharp drop on China’s softened demand outlook. Brent crude remained around $73.83, and WTI was at $70.27.
Overall, markets are likely to experience a cautious tone, reflecting global uncertainties and mixed economic signals.