The Indian stock market is expected to see a muted opening on Tuesday, following losses in global markets, amid higher Treasury yields and elevated crude oil prices. as persistent uncertainty over the US-Iran war weigh on sentiment.
The trends on Gift Nifty also signal a steady start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 22,832 level, a premium of nearly 13 points from the Nifty futures' previous close.
In the previous session, the Indian stock market crashed, with the benchmark indices shedding 1.5% each.
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The Sensex plunged 1,124.02 points, or 1.52%, to close at 72,771.72, while the Nifty 50 settled 360.25 points, or 1.56%, lower at 22,780.25.
“With the Nifty 50 index extending its corrective phase and volatility rising sharply, the near-term setup remains cautious, with stock-specific opportunities likely to emerge selectively,” said Ajit Mishra, SVP – research, Religare Broking.
Here are five key factors to watch out for ahead of the opening of the Indian stock market today:
Asian Markets
Asian markets traded lower on Tuesday, following overnight losses on Wall Street. Japan's Nikkei 225 fell 0.79%, while the Topix declined 1.55%. South Korea's Kospi dropped 0.41%, and the Kosdaq slipped 1.03%. Hong Kong's Hang Seng index futures indicated a higher opening.
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Wall Street
US stock market ended lower on Monday as crude oil prices and Treasury yields rose.
The Dow Jones Industrial Average declined 347.11 points, or 0.67%, to 51,481.51, while the S&P 500 shed 59.72 points, or 0.77%, to 7,683.69. The Nasdaq Composite closed 248.34 points, or 0.92%, lower at 26,820.38.
US Treasury Yields
US Treasury yields continued their rally on interest rate hike concerns. The benchmark 10-year Treasury note yield ended above 5.2%, near levels not seen since 2007. The 30-year topped 5.56%, trading around a 2004 high.
Crude Oil Prices
Crude oil prices rose for a second successive session on concern over Middle East supply disruption. Brent crude futures gained 0.86% to $106.19 a barrel, while US West Texas Intermediate crude was at $93.36, up 0.82%.
Gold Rate Today
Gold prices held a sharp decline as rising US Treasury yields and expectations of additional Federal Reserve rate hikes dented demand for the non-yielding metal. Spot gold was flat at $4,117.60, after falling 4% in the previous session, while silver price was little changed at $60.64 an ounce, after sliding almost 6% the previous session.
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