The Indian stock market is expected to remain volatile on Tuesday, following mixed cues from global markets, amid cautious sentiment over the rising crude oil prices and high inflation. Renewed escalation in the US-Iran war and the disruption in energy supplies continue to pose risk to the domestic equity market.
The trends on Gift Nifty also signal a positive start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 23,535 level, a premium of nearly 50 points from the Nifty futures' previous close.
This week, market participants will focus on the key events, including the US Federal Reserve monetary policy along with that of the Bank of Japan, trajectory of crude oil prices and the inflation data.
“The near-term task is to book partial profits where valuations are stretched and systematic risk exposure is highest and redeploy into defensive and deep-value segments,” said Vinod Nair, Head of Research, Geojit Investments.
Here are five key factors to watch ahead of the opening of the Indian stock market today:
Asian Markets
Asia markets traded mixed on Tuesday, following overnight losses on Wall Street. Japan's Nikkei 225 rose 0.40%, while the Topix fell 0.07%. South Korea's Kospi declined 0.38%, and the Kosdaq rallied 1.96%. Hong Kong's Hang Seng index futures indicated a higher opening.
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Wall Street
US stock market ended lower on Monday amid higher treasury yields and cautiousness over the calls for slowdown in the development of artificial intelligence (AI).
The Dow Jones Industrial Average fell 0.29% to 52,421.17, while the S&P 500 declined 0.48% to end at 7,619.94. The Nasdaq closed 0.56% lower at 26,186.41.
US Treasury Yields
US Treasury yields surged, with the benchmark 10-year bond yields rising above 5%, the highest level since October 2023. The yield on the 10-year notes was last up 3.51 basis points at 5.01%.
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India CPI Inflation
India's retail inflation rose to 4.82% in August, driven by food items. The wholesale price-based inflation also increased to 9.92% in August from 9.78% in July, official data showed.
Crude Oil Prices
Crude oil prices rose on supply disruptions concerns after Saudi Arabia's East-West pipeline remained shit due to the attacks on its energy infrastructure. Brent crude futures rose 1.12% to $106.86 a barrel, while US West Texas Intermediate futures were up 1.26% at $102.67 a barrel.
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