The Indian stock market is expected to extend rally on Wednesday, led by a moderation in crude oil prices and a revival in foreign portfolio inflows. The trends on Gift Nifty also signal a gap-up start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 25,323 level, a premium of nearly 290 points from the Nifty futures' previous close.
The Indian market was closed on Tuesday on account of Diwali Balipratipada.
On Monday, the domestic equity indices ended higher, with benchmark Nifty 50 closing above the key 25,000 level.
“After the sharp rally, some consolidation would be healthy for the market. We recommend using any further consolidation to selectively accumulate stocks, with a focus on banking, pharma, auto, infrastructure and capital markets themes,” said Ajit Mishra, SVP – research, Religare Broking.
Here are five key factors that are likely to drive the Indian stock market today:
Asian Markets
Asian markets traded higher on Wednesday, despite overnight losses on Wall Street. Japan's Nikkei 225 rose 0.28%, while the Topix gained 0.57%. South Korea's Kospi added 0.28%, and the Kosdaq rallied 3.91%. Hong Kong's Hang Seng index futures indicated a lower opening.
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Wall Street
US stock market ended lower on Tuesday after hotter-than-expected inflation data raised expectations for an interest rate hike from the Federal Reserve next month.
The Dow Jones Industrial Average declined 157.86 points, or 0.30%, to 52,231.89, while the S&P 500 fell 29.01 points, or 0.38%, to 7,520.93. The Nasdaq Composite closed 187.26 points, or 0.74%, lower at 25,065.87.
US Inflation
US consumer prices increased more than expected in October. The Consumer Price Index (CPI) increased 0.4% last month, after advancing 0.6% in September. Annual consumer inflation was 3.7% in September.
Gold Rate Today
Gold prices were steady after a sharp fall as US inflation print reinforced bets for a Fed rate hike in December. Gold price rose 0.1% to $4,036.30 an ounce, after falling 2.6% in the previous session. Silver price was flat at $51.56 an ounce, after falling 3.5% in the earlier session.
Crude Oil Prices
Crude oil prices edged higher after falling to a two-month low in the previous session. Brent crude futures rose 0.74% to $92.17 a barrel, while US West Texas Intermediate crude was at $86.52 a barrel, up 0.56%.
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