The Indian stock market is expected to open on a muted note on Monday, following mixed global market cues. The trends on Gift Nifty signal a mildly positive start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 22,648 level, a premium of nearly 36 points from the Nifty futures' previous close.
On Friday, the Indian stock market staged a strong rebound, led by buying across the board.
The Sensex jumped 879.09 points, or 1.23%, to close at 72,472.33, while the Nifty 50 settled 288.65 points, or 1.30%, higher at 22,520.45.
“Indian equities are likely to remain cautious on Monday as investors look for follow-through buying after Friday's sharp rebound to determine whether the recovery has sufficient momentum to extend beyond a short-term relief rally. The IT-led advance has improved near-term sentiment, but sustained buying will be crucial to establishing a firmer market direction,” said Ponmudi R, CEO of Enrich Money.
Here are five key factors that are expected to drive the Indian stock market today:
Asian Markets
Asian stock markets traded mixed on Monday. South Korea's Kospi declined 2.06%, while the Kosdaq slipped 3.72%. Hong Kong's Hang Seng index futures indicated a higher opening. Japan markets are closed for a holiday.
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Wall Street
US stock market ended higher on Friday, with all three major US stock indexes gaining for the day and logging weekly gains.
The Dow Jones Industrial Average rallied 423.31 points, or 0.83%, to 51,654.95, while the S&P 500 gained 46.15 points, or 0.59%, to 7,811.51. The Nasdaq Composite closed 172.83 points, or 0.64%, higher at 27,366.17.
Russia-Ukraine Energy Ceasefire
President Donald Trump said that Russia and Ukraine had agreed to an “energy ceasefire” effective immediately. Meanwhile, after an agreement between Russian President Vladimir Putin and Donald Trump, Russia partially lifted its ban on diesel exports, allowing 500,000 metric tons of fuel to reach international markets.
RBI's Rupee Defence
The Reserve Bank of India (RBI) rolled out a series of measures to support the falling rupee, including opening a special window to meet state-run oil companies' dollar requirements, and the introduction of a new tool requiring banks to set aside cash with the central bank for some foreign exchange transactions.
Crude Oil Prices
Crude oil prices declined on hopes that more Russian supplies following a US-Russia diesel deal. Brent crude futures dropped 2.09% to $102.53 a barrel, while US West Texas Intermediate crude was at $89.81 a barrel, down 2.22%.
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