The Indian stock market is expected to open on a cautious note on Monday, despite upbeat cues from global markets, as persistently elevated crude oil prices continue to dent 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 22,682 level, a discount of nearly 85 points from the Nifty futures' previous close.
In the previous session, the domestic equity market ended higher, with the benchmark indices rebounding from their intraday lows as buying emerged at lower levels.
The Sensex rallied 482.92 points, or 0.66%, to close at 73,606.75, while the Nifty 50 settled 153.20 points, or 0.68%, higher at 22,753.20.
“The market's recovery reflects selective buying in metals, pharmaceuticals and healthcare, rather than a decisive improvement in overall sentiment. Going forward, the sustainability of the rebound will depend on quarterly earnings, developments in West Asia and the US Federal Reserve's policy outlook,” said Vikram Kasat - Chief Business Officer – Advisory and Dealing at PL Capital.
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, amid optimism around the Anthropic IPO filing. Japan's Nikkei 225 rallied 2.02% while the Topix rose 0.68%. South Korea's Kospi jumped 3.92% and the Kosdaq surged 4.31%. Hong Kong's Hang Seng index futures indicated a higher opening.
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Wall Street
US stocks ended higher on Monday, boosted by gains in AI-related stocks after Anthropic's IPO filing.
The Dow Jones Industrial Average rose 146.42 points, or 0.28%, to 52,361.58, the while S&P 500 gained 53.09 points, or 0.70%, to 7,676.77. The Nasdaq Composite closed 214.04 points, or 0.83%, higher at 26,169.38.
Defence Acquisition Council
The Defence Acquisition Council (DAC) has accorded Acceptance of Necessity (AoN) to various capital acquisition proposals of an estimated cost of about Rs 2,12,000 crore. The DAC cleared procurement of a range of military platforms and weapon systems, including light multi-role helicopters, long-range Kamikaze drones and radars, among others.
Crude Oil Prices
Crude oil prices eased but stayed close to six-month highs. Brent crude futures fell 0.64% to $115.07 a barrel, while US West Texas Intermediate crude was down 0.52% at $101.23.
Gold Rate Today
Gold prices were steady near $4,000 an ounce ahead of the Federal Reserve's interest rate decision this week. Spot gold price fell 0.2% to $4,007.66 an ounce, while silver prices declined 0.1% to $53.90 an ounce.
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