The Indian stock market indices, Sensex and Nifty 50, are likely to open on a tepid note Monday tracking mixed cues from global peers.
Asian markets traded lower while the US stock indices ended mixed on Friday on dampened investors risk sentiment.
Global investors will focus on monthly US retail sales data, industrial production data and a key speech by Federal Reserve chairman Jerome Powell.
On the domestic front, the Indian equity indices ended lower on Friday dragged by selling in index heavyweights. The Sensex fell 125.65 points, or 0.19%, to close at 66,282.74, while the Nifty 50 ended 42.95 points, or 0.22%, lower at 19,751.05.
“The steady retail inflation in the US, the probability of further rate hikes in the US still remaining active, and the ongoing geo- political tensions, are factors that may dampen the market sentiment in the coming weeks too. But the reality of a strong domestic economy supports equities, and therefore, in any corrective downward movements it affords a significant amount of protection,” said Joseph Thomas, Head of Research, Emkay Wealth Management.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — October 16
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Monday as investors await key economic data from China and Japan.
Japan’s Nikkei 225 declined 1.69% and the Topix fell 1.26%. South Korea’s Kospi index dropped 0.14%.
Hong Kong’s Hang Seng index futures traded lower at 17,751, compared with the HSI’s close of 17,813.45.
Australia’s S&P/ASX 200 was down 0.24%.
Gift Nifty was trading around 19,727 as against Nifty futures’ previous close of 19,734, indicating a flat-to-negative start for the Indian benchmark indices.
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Wall Street
US stock market indices ended mostly lower on Friday as deteriorating consumer sentiment data and the Middle East conflict soured investors’ risk appetite.
The Dow Jones Industrial Average rose 39.15 points, or 0.12%, to 33,670.29, while the S&P 500 fell 21.83 points, or 0.50%, to 4,327.78 and the Nasdaq Composite ended 166.99 points, or 1.23%, lower at 13,407.23.
Among stocks, shares of JPMorgan Chase and Wells Fargo rose after their quarterly profits beat estimates led by higher interest rates. Wells Fargo shares gained 3% and JPMorgan shares rallied 1.5%. Citigroup shares eased 0.2%.
BlackRock shares declined 1.3%, UnitedHealth shares surged 2.6%, while Dollar General jumped 9%.
Also Read: Wall Street week ahead: Investors’ focus on retail sales, factory output data and Jerome Powell’s speech
US consumer sentiment sours
US consumer sentiment deteriorated in October, with households expecting higher inflation over the next year, but labor market strength was likely to continue supporting consumer spending, Reuters reported.
The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 63.0 this month compared with 68.1 in September. Economists polled by Reuters had forecast a preliminary reading of 67.2.
China’s export slump eases
The fall in China’s exports moderated further in September. Overseas shipments fell 6.2% from a year ago to $299 billion, a slower rate than the 8% decline forecast by economists in a Bloomberg survey. Imports decreased 6.2%, down for seven months in a row. The resulting trade surplus was $77.7 billion.
Major US banks show profit boost
Major US banks said on Friday higher interest rates boosted profits even though the economy was slowing and consumers showed signs of more cautious behavior, Reuters reported.
JPMorgan, Wells Fargo and Citigroup’s earnings indicated higher US Federal Reserve interest rates had allowed them to charge more on loans while raising rates on deposits more slowly. Consumers were starting to deplete savings, the banks said, and Citibank and Wells Fargo noted that losses on credit cards and other debts were starting to rise.
FPIs pull out ₹9,800 crore in October
Foreign investors have pulled out nearly ₹9,800 crore from Indian equities this month so far owing to a sustained rise in US bond yields and the uncertain environment resulting from the Israel-Hamas conflict.
This came after Foreign Portfolio Investors (FPIs) turned net sellers in September and pulled out ₹14,767 crore.
Also Read: Week Ahead: Q2 Results, WPI-based inflation, RBI MPC Minutes, crude oil prices among key market triggers this week
(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 taking any investment decisions.
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