Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday following weak global cues.

Asian markets traded mostly lower, while the US stock market ended mixed last week, with the Nasdaq and the S&P 500 hitting record closing highs.

Global geopolitical tensions escalated as political tumult in France and South Korea was joined by the fall of Syrian President Bashar al-Assad’s regime, which complicated an already fraught situation in the Middle East.

This week, investors will monitor key stock market triggers, including domestic and global macroeconomic data, upcoming IPOs, flow of foreign funds, Russia-Ukraine geopolitical tensions, US bond yields, dollar, crude oil prices, and other global market cues.

On Friday, the Indian stock market benchmark indices ended marginally lower after the Reserve Bank of India’s (RBI) monetary policy announcement.

The Sensex eased 56.74 points, or 0.07%, to close at 81,709.12, while the Nifty 50 settled 30.60 points, or 0.12%, lower at 24,677.80.

“The primary market is gearing up for a dynamic week, with three mainline IPOs, including Vishal Mega Mart IPO and Mobikwik IPO, alongside five SME offerings set to open for public subscription. We expect Nifty 50 to maintain its gradual upmove, driven by potential increase in liquidity post RBI’s CRR cut, positive news flows around government policies and return of FII inflows,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed amid the release of economic data from the region and global geopolitical tensions.

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2%.

Japan’s Nikkei 225 rose 0.5% higher, while the Topix gained 0.4%. South Korea’s Kospi fell 1.6%, while the Kosdaq declined 2.9% amid the ongoing political turmoil in the country. Hong Kong Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 24,730 level, a discount of over 50 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Friday, with the Nasdaq and the S&P 500 rising to record closing highs.

The Dow Jones Industrial Average declined 123.19 points, or 0.28%, to 44,642.52, while the S&P 500 rose 15.16 points, or 0.25%, to 6,090.27. The Nasdaq Composite ended 159.05 points, or 0.81%, higher at 19,859.77.

For the week, the Nasdaq gained 3.3%, the S&P 500 rose about 1% and the Dow fell 0.6%.

Lululemon Athletica share price jumped 15.9%, Ulta Beauty stock price rallied 9%, while UnitedHealth Group shares plunged 5.1%. Meta Platforms shares gained 2.4%.

US Nonfarm Payrolls

US Nonfarm payrolls increased by 227,000 jobs last month after rising by an upwardly revised 36,000 in October. Economists polled by Reuters had forecast payrolls would gain 200,000 jobs following a previously reported rise of 12,000 in October.

US Unemployment Rate

US unemployment rate rose to 4.2% in November from 4.1% in the previous month, pointing to an easing labor market that should allow the Federal Reserve to cut interest rates again this month Hourly wages rose 0.4% from October to November and 4% from a year earlier — both solid figures and slightly higher than forecasters had expected.

Federal Reserve

US Federal Reserve Governor Michelle Bowman said that inflation risks to the economy remain real and labor market data hard to interpret, and that augurs caution with further decisions on central bank rate cuts, Reuters reported.

Japan GDP

Japan’s economy expanded in July-September at a faster pace than initially reported. Japan’s gross domestic product rose an annualised 1.2% in the three months to September, higher than economists’ median forecast and the initial estimate of 0.9% growth, Reuters reported. The revised numbers translate into a quarter-on-quarter expansion of 0.3% in price-adjusted terms, compared with a 0.2% growth issued on November 15.

Syria Civil War

The Syrian government collapsed after opposition fighters entered Damascus without any sign of army deployments. President Bashar al-Assad has fled the country and boarded a plane for an unknown destination on Sunday, two senior army officers told Reuters. Russian media reported that the ousted President had been granted asylum in Moscow on ‘humanitarian grounds’.

China Inflation

China’s retail inflation in November increased 0.2% YoY as against estimates of 0.5% rise, and compared with a rise of 0.3% MoM. China’s producer prices last month declined 2.5% YoY as against estimates of a 2.8% fall.

Dollar

The US dollar index was flat at 106.010 after edging up 0.2% last week. The euro stood at $1.0557. Against the yen, the dollar was steady at 149.92, having held to a 148.65 to 151.23 range last week.

(With inputs from Reuters)

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