- Indian markets expected to open cautiously amid mixed global cues and high crude prices
- Gift Nifty trading lower by nearly 71 points signals weak start for Nifty 50 and Sensex
- Asian stocks mostly higher, led by Japan and South Korea, while Hong Kong futures slipped
The Indian stock market is expected to open on a cautious note on Wednesday, tracking mixed global cues, as soaring Treasury yields amid elevated crude oil prices continue to dent risk-appetite.
The trends on Gift Nifty also signal a weak start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 22,795 level, a discount of nearly 71 points from the Nifty futures' previous close.
In the previous session, the equity market ended lower, with the benchmark Nifty 50 slipping below 22,600 during the day.
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The Sensex declined 242.65 points, or 0.33%, to close at 72,529.07, while the Nifty 50 settled 64.05 points, or 0.28%, lower at 22,716.20.
“The market's direction will remain closely linked to crude prices, geopolitical developments and FII flows. In this environment, investors should prioritise earnings visibility, strong balance sheets and staggered accumulation over aggressive positioning,” said Vikram Kasat - Chief Business Officer – Advisory and Dealing at PL Capital.
Here are five key factors to watch ahead of the opening of the Indian stock market today:
Asian Markets
Asian stock market traded mostly higher. Japan's Nikkei 225 gained 0.93% and the Topix rose 0.63%. South Korea's Kospi rallied 1.05% and the Kosdaq surged 1.38%. Hong Kong Hang Seng index futures indicated a lower opening.
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Wall Street
US stock market ended lower on Tuesday amid rising government bond yields ahead of inflation and labor market data.
The Dow Jones Industrial Average declined 131.59 points, or 0.26%, to 51,349.92, while the S&P 500 fell 12.85 points, or 0.17%, to 7,670.84. The Nasdaq Composite closed 22.84 points, or 0.08%, to lower at 26,797.54.
US Treasury Yields
US Treasury yields rallied as soaring crude oil prices stoked inflation worries. The yield on the benchmark 10-year Treasury bond climbed to 5.293% — its highest level since June 2007. The 30-year bond yield hit 5.6206%, its highest since June 2002.
Crude Oil Prices
Crude oil prices inched higher after settling 2.5% lower in the previous session, amid signs of recovering crude exports from the Middle East. Brent futures gained 0.30% to $102.90 a barrel, WTI crude futures rose 0.03% to $89.41 a barrel.
Gold Rate Today
Gold prices steadied, after advancing on Tuesday. Spot gold price rose 0.1% to $4,184.27 an ounce, while silver price was 0.1% higher at $61.54 an ounce.
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