The Indian stock market is expected to open lower on Monday, following mixed global markets, as renewed geopolitical uncertainty and a rebound in crude oil prices weigh on investor sentiment.
The trends on Gift Nifty also signal a negative start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 23,110 level, a discount of nearly 77 points from the Nifty futures' previous close.
The domestic equity market ended lower last week, with the benchmark Nifty 50 closing in the red for the seventh consecutive week, weighed down by surging bond yields and elevated oil prices.
Here are five key factors to watch out for ahead of the opening of the Indian stock market today.
Asian Markets
Asian stock markets traded mixed on Monday, amid uncertainty over the end to the US-Iran war. Japan's Nikkei 225 rose 0.75% while the Topix gained 0.58%. South Korea's Kospi dropped 1.07%, while the Kosdaq rallied 1.62%. Hong Kong Hang Seng index futures indicated a lower opening.
Wall Street
US stock market ended higher on Friday, led by gains in AI-related technology stocks.
The Dow Jones Industrial Average rallied 0.93% to 51,828.62, while the S&P 500 rose 0.51% to end the session at 7,743.41. The Nasdaq closed 0.48% higher at 27,068.72. For the week, the S&P 500 gained 1.2%, while the Nasdaq surged 2%.
US-Iran War
US President Donald Trump said he expected the war with Iran to end “very soon”, but declined to rule out further strikes on Iran before the midterm elections. Earlier, he also rejected a proposal from Iran to resolve the conflict and reopen the Strait of Hormuz. Meanwhile, Iranian Foreign Minister Abbas Araghchi said Tehran was prepared for war to resume, “even if it comes to a doomsday war”.
FPI Outflows
Foreign Portfolio Investors (FPI) have turned net sellers in the Indian stock market in September after two consecutive months of buying. FPI outflows from Indian equities this month so far stood at Rs 17,131 crore, NSDL data showed. However, FPI inflows in the primary market were at Rs 8,551 crore. Thus, the total FPI selling this year stands at Rs 2,41,572 crore.
Crude Oil Prices
Crude oil prices rallied after US President Donald Trump rejected a peace deal from Iran and reopen the Strait of Hormuz. Brent crude futures gained 1.52% to $105.91 a barrel, while US West Texas Intermediate crude was at $93.54 a barrel, up 1.22%.
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