The Indian stock market is expected to open lower on Monday, following weak global market cues, as persistent tensions in the Middle East due to the ongoing US-Iran war continue to dent investors' risk-appetite. The trends on Gift Nifty also signal a weak start for the frontline indices, Nifty 50 and Sensex today.
The Gift Nifty was trading around 24,401 level, a discount of nearly 49 points from the Nifty futures' previous close.
On Friday, the Indian stock market ended marginally lower amid choppiness, with both the benchmark indices snapping their two-week winning streak.
The Senex fell 70.71 points, or 0.09%, to close at 78,009.25, while the Nifty 50 settled 29.85 points, or 0.12%, lower at 24,366.00.
“Indian equities are likely to remain range-bound this week as global cues and macro developments assume greater importance following the conclusion of the Q1FY27 earnings season. Going forward, stock-specific action is likely to become more selective as investors assess the sustainability of the earnings recovery and broader domestic fundamentals,” said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Developments in West Asia, crude oil prices and global sentiment will remain the key near-term drivers, he added.
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Here are five key factors to watch out for before the opening of the Indian stock market today:
Asian Markets
Asian markets traded mixed on Monday. Japan's Nikkei 225 fell 0.19%, while the Topix declined 0.59%. Hong Kong's Hang Seng index futures indicated a higher opening. South Korean markets were closed for a holiday.
Wall Street
US stock market ended lower on Friday, as investors digested weaker-than-expected retail sales data.
The Dow Jones Industrial Average fell 0.20% to 53,732.41, while the S&P 500 declined 0.17% to end the session at 7,785.76. The Nasdaq closed 0.28% lower at 26,729.16. For the week, the S&P 500 gained 0.4% and the Nasdaq rose 0.1%.
US-Iran War Updates
The US-Iran peace talks remain stalled, while the shipping through the Strait of Hormuz slowed over the weekend, following attacks on tankers, keeping the geopolitical tensions high in the Middle East.
Japan GDP
Japan's economy grew slower than expected in April-June quarter. The country's GDP grew at an annualised rate of 1.1%, compared with a median market estimate of 2.0% growth in a Reuters poll. It also followed an upwardly revised 1.9% expansion in the previous quarter.
FCNR Deposits
The Reserve Bank of India (RBI) will close the swap facility window for foreign currency non-resident (bank) or FCNR (B) deposits by August 31 as against the originally announced deadline of September 30, following robust inflows of more than $50 billion.
The central bank said it received $52.3 billion via FCNR deposits raised by banks until August 13.
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