The Indian stock market is expected to open lower on Monday, following weak global market cues, as investors remain cautious after the fresh escalation in the US-Iran war and subsequent rising in crude oil prices. The renewed fears of interest rate hike by the US Federal Reserve also dented 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 24,226 level, a discount of nearly 116 points from the Nifty futures' previous close.
“Amid current volatility, investors should avoid aggressively chasing prices and instead use meaningful declines to gradually accumulate fundamentally strong companies,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Disciplined position sizing, prudent risk management and a stock-specific approach will remain important until greater clarity emerges regarding global monetary policy, crude oil prices and geopolitical developments, he added.
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Here are five key factors to watch ahead of the opening of the Indian stock market today:
Asian Markets
Asian stock markets traded lower on Monday, after the US-Iran war in the Middle East escalated. Japan's Nikkei 225 declined 1.71%, and the Topix fell 0.82% lower. South Korea's Kospi dropped 1.83%, while the Kosdaq slipped 3.65%. Hong Kong's Hang Seng index futures indicated a lower opening.
Wall Street
US stock market ended lower on Friday, as investors turned cautious on increasing prospects for an interest rate hike after Federal Reserve Chair Kevin Warsh reiterated the central bank's focus on fighting inflation.
The Dow Jones Industrial Average eased 9.45 points, or 0.02%, to 53,559.99, while the S&P 500 fell 19.23 points, or 0.25%, to 7,711.76. The Nasdaq Composite closed 138.93 points, or 0.52%, lower at 26,402.42.
US-Iran War
The war in the Middle East escalated after US forces struck Iranian rocket launchers on Larak Island near the Strait of Hormuz. Iran also vowed to retaliate for what it called a deadly attack.
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HDFC Bank CEO Exit Announcement
HDFC Bank's Managing Director and CEO Sashidhar Jagdishan has decided not to seek reappointment and will step down from his position on October 26, 2026. The private sector lender is considering Kaizad Bharucha and Jimmy Tata as two internal candidates for the role of the next CEO, two sources in the know told NDTV Profit.
Crude Oil Prices
Crude oil prices rallied over 1% after the US attacked an Iranian island in the Strait of Hormuz. Brent crude futures gained 1.52% to $89.44 a barrel, while US West Texas Intermediate crude rose 1.35% to $84.53 a barrel.
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