The Indian stock market is set for a potentially positive start on Tuesday, with the Gift Nifty trading around 23,545—a premium of 30 points compared to the previous close of Nifty futures. This slight uptick reflects an optimistic opening for domestic indices Sensex and Nifty 50, following a streak of losses. On Monday, the indices extended their declines for the seventh consecutive session, marking their longest losing streak since February 2023. The Sensex dropped 241.30 points to close at 77,339.01, while the Nifty 50 ended 78.90 points lower at 23,453.80.
Indian Stock Market analysts, like Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., attribute this uncertainty to persistent fund outflows, surging U.S. bond yields, and underwhelming local earnings. However, global cues suggest a shift in sentiment that could benefit the Indian markets.
Global Market Performance
Asian markets opened higher on Tuesday, tracking gains on Wall Street. Japan’s Nikkei 225 and Topix rose by 0.68% and 0.65%, respectively, while Hong Kong’s Hang Seng futures hinted at a stronger opening. South Korea’s Kospi and Kosdaq traded flat, offering a mixed regional performance.
Wall Street closed with mixed results on Monday as a halt in Treasury selloffs stabilized investor sentiment. The Nasdaq and S&P 500 gained 0.60% and 0.39%, respectively, while the Dow Jones Industrial Average slipped by 0.13%. Tesla shares led notable gains with a 5.6% rally, while other technology stocks like Advanced Micro Devices and Intel also performed well. Meanwhile, the U.S. dollar edged lower but remained close to its one-year peak.
Commodities and Bond Yields
In commodities, crude oil prices steadied after experiencing their largest gains in over five weeks, driven by a weaker dollar. West Texas Intermediate crude traded near $69 a barrel, while Brent crude rose to $73.30 a barrel. Similarly, gold prices rebounded after a six-day losing streak, with spot gold climbing 1.93% to $2,610.73 per ounce.
On the bond front, U.S. Treasury yields showed signs of easing after recent highs. The benchmark 10-year note yield dipped to 4.414%, while the two-year yield fell to 4.284%. These movements, coupled with improving U.S. homebuilder sentiment data, signal a gradual stabilization in financial markets.
As global cues remain a mix of optimism and caution, Indian investors are advised to stay vigilant, particularly in light of ongoing international developments and local Indian Stock Market conditions.
