The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday following a rally in global markets, and as investors will react to the Q2 results of several index heavyweights, including Reliance Industries, HDFC Bank and ICICI Bank.
Asian markets traded higher, led by Japanese stock markets, while the US market also gained last week.
This week, investors will focus on key stock market triggers, including developments in the US-China trade war, India-US trade deal, next set of Q2 results, FPI flows, and key domestic and global macroeconomic data.
On Friday, the Indian stock market ended with healthy gains for the third consecutive session, with the benchmark indices hitting their 52-week highs during the session.
The Sensex rallied 484.53 points, or 0.58%, to close at 83,952.19, while the Nifty 50 settled 124.55 points, or 0.49%, higher at 25,709.85.
“We expect the market to continue its up-move, supported by healthy Q2 earnings so far, robust festive demand, optimism over a potential India–US trade deal and renewed FII buying in recent sessions,” said Siddhartha Khemka – Head Of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
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Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Monday amid optimism on earnings as the reporting season gets into full swing. MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 0.1%.
Japan’s Nikkei 225 rallied 2.6% to a record high, while the Topix gained 1.9%. South Korea’s Kospi rose 0.36% and the Kosdaq advanced 1.13%. Hong Kong’s Hang Seng Index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 25,983 level, a premium of nearly 225 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
US stock market ended higher and Treasury yields rebounded on Friday after President Donald Trump said his face-to-face trade talks with Chinese President Xi Jinping were still on.
The Dow Jones Industrial Average gained 238.37 points, or 0.52%, to 46,190.61, while the S&P 500 rose 34.94 points, or 0.53%, to 6,664.01.The Nasdaq Composite closed 117.44 points, or 0.52%, higher at 22,679.98.
Nvidia share price rose 0.78%, Apple shares gained 1.96%, while Tesla stock price rallied 2.46%. American Express shares jumped 7.27% and Mastercard stock price advanced 2.02%.
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US-China Trade Tensions
United States President Donald Trump said that his proposed 100% tariffs on Chinese imports would not be sustainable, as he hoped that ties with the country would be fine when he meets President Xi Jinping in South Korea in two weeks.
India-US Trade Talks
Union Commerce minister Piyush Goyal said that talks regarding the proposed India-US Bilateral Trade Agreement are “progressing in a cordial manner,” and that there is “no agreement until interests of the nation – India’s farmers, India’s fishermen, India’s MSME sector are fully addressed.”
China LPR
China left benchmark lending rates unchanged for the fifth consecutive month in October. The one-year loan prime rate (LPR) was kept at 3.0%, while the five-year LPR was unchanged at 3.5%.
Q2 Results
A slew of companies, including several index heavyweights such as Reliance Industries, HDFC Bank and ICICI Bank, announced their Q2 results during the weekend. Market participants will first react to quarterly earnings of these heavyweights, which are likely to set the tone for the broader market.
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US Dollar, Treasury Yields
The US dollar was up 0.2% at 150.92 yen, while the euro made similar gains to 175.89. The dollar index was flat at 98.543.
The US 10-year Treasury yields rose 2.9 basis points to 4.005%, while the 30-year bond yield rose 1.7 bps to 4.6005%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 3.3 bps to 3.459%.
Gold Prices
Gold prices remained high after jumping almost 6% last week to as far as $4,378.69. Gold prices were trading at $4,245 an ounce, with $4,200 now acting as chart support.
Crude Oil Prices
Crude oil prices fell on worries over a global glut amid escalating US-China trade tensions. Brent crude oil prices fell 0.4% to $61.05 a barrel, while US West Texas Intermediate futures declined 0.4% to $57.33.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
