The Indian stock market is likely to extend gains on Tuesday, following a rally in global markets, amid easing crude oil prices. The trends on Gift Nifty also signal an upbeat start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 22,650 level, a premium of nearly 30 points from the Nifty futures' previous close.
In the previous session, the benchmark indices gained over half a percent each, with the Nifty 50 reclaiming 22,550 level.
“Although the recent recovery is encouraging and the market remains oversold, the broader trend remains cautious. The current rebound should be approached selectively, with a preference for stock-specific opportunities rather than aggressive index-level exposure,” said Ajit Mishra, SVP – research, Religare Broking.
Here are five key factors that may drive the Indian stock market today:
Asian Markets
Asian stock market traded higher on Tuesday, tracking overnight rally on Wall Street, led by gains in AI-linked stocks. Japan's Nikkei 225 rose 0.38%, while the Topix added 0.31%. South Korea's Kospi gained 0.31% and the Kosdaq rallied 2.17%. Hong Kong's Hang Seng index futures indicated a higher opening. Mainland China markets are closed for a holiday.
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Wall Street
US stock market ended higher on Monday, with the Nasdaq notching a record high close, lifted by Nvidia and Microsoft shares.
The Dow Jones Industrial Average rose 0.18% to 51,267.90, while the S&P 500 gained 0.66% to end the session at 7,773.95. The Nasdaq closed 1.05% higher at 27,477.31.
AI Stocks Rally
Artificial Intelligence (AI)-related stocks rallied in the US. SpaceX stock price jumped 7.63, Nvidia shares gained 2.12%, Tesla stock price rallied 2.20%, Meta Platforms share price added 1.90%, and Microsoft shares rose 1.48%.
US Treasury Yields
US Treasury yields extended gains, with the 10-year note yield surpassing 5.3%, again touching highs last seen in 2002. During the session, the 30-year yield also breached 5.7%, its highest level in 24 years.
Crude Oil Prices
Crude oil prices steadied after losing almost 2% on Monday amid rising Persian Gulf exports and a price cut by Saudi Arabia. Brent crude futures inched 0.02% higher to $100.34 a barrel, while US West Texas Intermediate crude eased 0.07% to $89.37 a barrel.
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