The Indian stock market is expected to open on a cautious note on Tuesday as mounting inflation concerns and geopolitical tensions weigh on investor sentiment.
The trends on Gift Nifty signal a marginally positive start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 22,418 level, a premium of nearly 32 points from the Nifty futures' previous close.
In the previous session, the benchmark indices declined over half a percent, amid concerns over escalating geopolitical tensions and elevated energy prices.
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The Sensex declined 547.65 points, or 0.76%, to close at 71,924.68, while the Nifty 50 settled 157.10 points, or 0.70%, lower at 22,363.35.
“With volatility elevated and buying conviction remaining weak, the near-term outlook continues to be cautious. We thus reiterate our preference for a hedged approach, with a negative bias until the index demonstrates sustained strength above key resistance levels,” said Ajit Mishra, SVP – research, Religare Broking.
Here are five key factors that may drive the Indian stock market today:
Asian Markets
Asian markets traded lower on Tuesday, following overnight losses on Wall Street, and concerns over elevated crude oil prices. Japan's Nikkei 225 declined 2.26% while the Topix fell 0.29%. South Korea's Kospi slipped 4.33% at open, while the Kosdaq plunged 3.46%. Hong Kong Hang Seng index futures indicated a lower opening.
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Wall Street
US stock market ended mixed on Monday, as investors awaited the third-quarter earnings season and for economic data this week.
The Dow Jones Industrial Average gained 195.60 points, or 0.38%, to 51,850.55, while the S&P 500 eased 4.30 points, or 0.06%, to 7,807.24. The Nasdaq Composite closed 120.27 points, or 0.44%, lower at 27,245.90.
Tech Socks Selloff
Technology stocks in Asian markets witnessed a sharp selloff, tracking losses in US peers.
In Japan, SoftBank Group shares cracked 8.51%, Advantest share price shed 4.28%, Tokyo Electron stock price plunged 5.14% and Kioxia shares crashed 11.54%.
In South Korea, SK Hynix shares slipped 6.5%, Samsung Electronics share price declined 5.69% and Seoul Semiconductor shares shed 4.07%.
CPI Inflation
India's retail inflation accelerated to 5.54% in September, its highest level in the new Consumer Price Index (CPI) series. The inflation rose from 4.83% in August. The latest figure marks a near-two-year high, the highest since October 2024.
Crude Oil Prices
Crude oil prices fell after gaining by nearly $2 a barrel in the previous session. Brent crude futures declined 0.52% to $106.10 a barrel, while US West Texas Intermediate crude futures fell 0.46% to $93.31 a barrel
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