The Indian stock market is expected to open higher on Monday, amid mixed global market cues. The trends on Gift Nifty also signal a higher start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 24,350 level, a premium of nearly 64 points from the Nifty futures' previous close.
“Given the prevailing volatility, traders should avoid aggressively chasing prices and instead use meaningful declines to gradually accumulate fundamentally strong companies. Disciplined position sizing, prudent risk management and a stock-specific approach are likely to remain critical until greater clarity emerges on global monetary policy, crude oil prices and geopolitical developments,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
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Here are five key factors to watch out for ahead of the Indian stock market opening today.
Asian Markets
Asian markets traded mixed on Monday as investors focus on the US' plan for fresh economic sanctions against Iran. Japan's Nikkei 225 fell 0.08%, while the Topix rose 0.16%. South Korea's Kospi declined 0.97%, but the Kosdaq rallied 2.25%. Hong Kong Hang Seng index futures indicated a lower opening.
Wall Street
US stock market ended higher on Friday, but declined for the week, amid fluctuating government bond yields and a lack of clarity on progress in the Middle East.
The Dow Jones Industrial Average rallied 517.80 points, or 0.98%, to 53,277.01, while the S&P 500 gained 33.21 points, or 0.43%, to 7,674.37. The Nasdaq Composite closed 113.29 points, or 0.44%, higher at 26,180.46.
For the week, the S&P 500 declined 1.43%, the Nasdaq dropped 2.05%, and the Dow fell 0.85%.
US-Iran War Updates
US Treasury Secretary Scott Bessent is expected to announce on Monday the new sanctions on Iran after the US vowed to impose an “unprecedented” level of economic warfare. Meanwhile, the head of Iran's top security body has warned that Tehran will see any country's support for new US economic measures against the Islamic Republic as an “act of war”.
Crude Oil Prices
Crude oil prices traded lower amid profit booking after a sharp rally last week. Brent crude futures declined 1.41% to $ 93.06, while US West Texas Intermediate crude was at $85.76 a barrel, down 1.49%.
Gold Rate Today
Gold prices traded near a three-month high amid a weaker dollar. Bullion climbed as much as 0.5% to above $4,620 an ounce, building on a third weekly gain. Last week, gold prices rallied more than 5% after US Treasury announced a ramp-up in buybacks of long-dated government debt, driving yields and the dollar lower.
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