Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a tepid note Monday following cautiousness in global markets.

Asian markets traded mixed, while the US stock market ended higher last week led by strong earnings by Amazon.

Uncertainty over US Presidential Elections this week and US Federal Reserve policy will likely keep markets volatile. After the US jobs data was released, investors largely stuck to bets that the central bank would cut rates by 25 basis points in November.

On Friday, the Indian stock market indices ended the special Diwali Muhurat trading session higher amid across the board gains.

The Sensex gained 335.06 points, or 0.42%, to close at 79,724.12, while the Nifty 50 settled 99.00 points, or 0.41%, higher at 24,304.35.

This week, market participants will closely monitor key triggers, including the next set of Q2 results, US Presidential Election 2024, US Federal Reserve interest rate decision, Middle-East conflicts, flow of foreign funds, trends in crude oil prices, global cues and other key domestic and global macroeconomic data.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher following gains on Wall Street last week ahead of the US Presidential Elections and US Fed rate decision.

Japan’s markets were closed for a holiday. South Korea’s Kospi gained 0.96%, while the Kosdaq rallied 2.24%. Hong Kong’s Hang Seng index futures indicated a lower opening. The Taiwan Weighted Index rose 0.27%

Gift Nifty Today

Gift Nifty was trading around 24,313 level, a discount of nearly 70 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market ended higher on Friday as Amazon’s strong earnings countered a significant drop in US job growth in October.

The Dow Jones Industrial Average gained 288.73 points, or 0.69%, to 42,052.19, while the S&P 500 rose 23.35 points, or 0.41%, to 5,728.80. The Nasdaq Composite ended 144.77 points, or 0.80%, higher at 18,239.92.

Amazon share price rallied 6.2%, while Apple stock price fell 1.2%. Intel shares jumped 7.8% and Chevron stock rose 2.8%.

US Nonfarm Payrolls

US hiring advanced at the slowest pace since 2020 in October while the unemployment rate held at a low level in a month. US Nonfarm payrolls increased 12,000 last month, following a downward revision to the prior two months and much smaller than economists’ estimate of a 113,000 rise. The unemployment rate held at 4.1% and hourly earnings remained firm.

OPEC

OPEC agreed to push back its December production increase by one month, the second delay to its plans to revive supply, Bloomberg reported. The group led by Saudi Arabia and Russia had intended to begin a series of monthly production increases by adding 180,000 barrels a day from December, but they will now keep supply restrained through that month.

Oil Prices

Crude oil prices traded higher after OPEC agreed to delay its December production increase by one month and tensions again escalated in the Middle East.

Brent crude oil prices rose 1.55% to $74.23 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 1.63% to $70.62.

Dollar

The US dollar weakened as the latest US presidential election polling data showed no clear advantage between Kamala Harris and Donald Trump, Bloomberg reported. The greenback dropped against most major currencies such as the yen and the Australian dollar in early Monday trading, while 10-year Treasury futures rose.

FPI Outflow

The FPI outflows recorded in October were the highest ever in a single month in Indian markets. FPIs offloaded ₹94,017 crore worth of Indian equities, and the net outflow stood at ₹96,358 crore as of October 31, taking into account debt, hybrid, debt-VRR, and equities, National Securities Depository Ltd (NSDL) data showed.

(With inputs from Bloomberg News)

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