The Indian stock market is expected to open lower on Monday, following mixed cues from global markets and higher crude oil prices. The trends on Gift Nifty also signal a weak start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 23,985 level, a discount of nearly 63 points from the Nifty futures' previous close.
This week, sentiment is expected to remain cautious amid high crude oil prices, geopolitical uncertainty and changing expectations on US monetary policy.
“Investors should continue to follow a selective approach and focus on companies with strong earnings visibility, growth and resilient business models. Metals, selected private banks, insurance, energy, realty and defence stocks may continue to provide stock-specific opportunities, while caution is advised in Auto, FMCG and sectors sensitive to higher crude prices and elevated global yields,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
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Here are five key factors to watch out for ahead of the opening of the Indian stock market today:
Asian Markets
Asia markets traded higher on Monday. Japan's Nikkei 225 gained 1.84%, while the Topix rose 0.72%. South Korea's Kospi rallied 3.01%, while the Kosdaq added 1.57%. Hong Kong Hang Seng index futures indicated a mildly higher opening.
Wall Street
US stock market ended lower on Friday, after stronger-than-expected job growth data raised hopes of interest rate hike in September by the US Federal Reserve.
The Dow Jones Industrial Average declined 271.86 points, or 0.51%, to 53,414.25, while the S&P 500 fell 29.11 points, or 0.38%, to 7,718.60. The Nasdaq Composite closed 77.07 points, or 0.29%, lower at 26,506.99.
US Nonfarm Payrolls
US job growth accelerated sharply in August while the unemployment rate held steady at 4.1%. The Nonfarm payrolls rose by 162,000 jobs last month after an upwardly revised rise of 21,000 in July.
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US-Iran War
The military attacks between the United States and Iran escalated over the weekend in the Middle East. Iran said it targeted three oil tankers in the Strait of Hormuz along with several US-linked ships, in retaliation for American attacks on Iranian tankers, Bloomberg reported.
Crude Oil Prices
Crude oil prices traded higher as concerns over the prolonged supply disruption increased after the US and Iran continued their strikes on vessels sailing in the Strait of Hormuz. Brent crude futures rose 0.23% to $96.50 a barrel, while US West Texas Intermediate crude was at $91.86 a barrel, up 0.42%.
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