Indian Stock Market Braces for Negative Opening
The Indian stock market is poised for a cautious start on Monday, as Gift Nifty was trading around 24,780—roughly 50 points below the Nifty futures’ previous close. This indicates a negative sentiment for domestic indices, with the Sensex and Nifty 50 likely to open lower, influenced by mixed global cues.
On Friday, however, Indian benchmark indices closed on a high note amidst market volatility. The Sensex surged 843.16 points (1.04%) to close at 82,133.12, while the Nifty 50 rose 219.60 points (0.89%) to settle at 24,768.30. Analysts, such as Siddhartha Khemka of Motilal Oswal Financial Services, forecast a consolidation phase with potential for gradual sectoral rotation and stock-specific gains.
Market participants will monitor critical factors this week, including monetary policy decisions from global central banks, domestic and global macroeconomic data, foreign fund flows, and geopolitical tensions like the Russia-Ukraine conflict.
Global Markets: Mixed Cues from Asia and Wall Street
Asian markets showed a mostly positive trend ahead of key data releases. Japan’s Nikkei 225 edged up 0.16%, and the Topix rose by 0.21%. South Korea’s Kospi rallied 0.83%, with the Kosdaq surging over 1%. Meanwhile, Hong Kong’s Hang Seng index futures suggested a slightly weaker opening. These gains reflected optimism for economic resilience in Asia, particularly as Japan’s core machinery orders exceeded expectations with a 2.1% rise in October.
On Wall Street, indices wrapped up last week on a mixed note. The Nasdaq celebrated its fourth consecutive week of gains, closing 23.88 points higher at 19,926.72. However, the S&P 500 and Dow Jones posted slight declines, ending at 6,051.09 and 43,828.06, respectively. While tech stocks like Broadcom and Marvell Technology soared, Nvidia experienced a 2.2% drop. These movements come amid anticipation of the U.S. Federal Reserve’s monetary policy decision, with a 96% probability of a 25 basis-point rate cut expected, according to CME FedWatch.
Bitcoin, Oil Prices, and Political Shifts Shape Market Sentiment
Cryptocurrency markets witnessed significant activity as Bitcoin prices surged to a record high of $105,023, marking a 2% rise and surpassing its previous peak from December 5. This milestone underlines the growing interest in digital assets amid evolving financial landscapes.
In the commodities market, crude oil prices eased slightly after sharp gains last week. Brent crude fell by 0.19% to $74.35 per barrel, while WTI crude futures dropped 0.29% to $71.08, reflecting concerns over tighter U.S. sanctions on Russian crude exports.
On the political front, South Korea’s President Yoon Suk Yeol was impeached following a controversial attempt to impose martial law. Prime Minister Han Duck-soo has temporarily assumed his duties, creating a potential ripple effect across Asian markets.
As global financial markets brace for a pivotal week, traders remain watchful of economic data releases, geopolitical developments, and central bank actions that could influence investor sentiment.
