Indian stock market: The Indian equity market indices, Sensex and Nifty 50, are expected to open on a positive note Tuesday following mixed global market cues amid prevailing optimism of deep interest rate cuts next year.
The Asian markets traded subdued while the US shares ended mostly higher ahead of the festive holidays.
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Analysts expect the market to remain range bound with stock specific action this week ahead of the year end. However, the underlying tone of the market remains positive on rising bets on the US Federal Reserve to cut interest rates early next.
The Indian stock market indices ended higher on Friday tracking positive cues from global peers.
The Sensex surged 241.86 points, or 0.34%, to close at 71,106.96, while the Nifty 50 settled 94.35 points, or 0.44%, higher at 21,349.40.
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“The ‘buy on dips’ strategy continues to drive investors during the subdued week. Despite a premium valuation, the short-term positive trend persists, supported by a strong revival in FIIs buying & stock specific actions. Heading into the festive season and year-end, we can anticipate a range-bound trade scenario with limited data points,” said Vinod Nair, Head of Research at Geojit Financial Services.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets were subdued on Tuesday amid a thin trade in the last week of the year 2023.
Japan’s Nikkei 225 was flat at 33,245.95, while Topix eased 0.10%. South Korea’s Kospi was also flat at 2,600 and the Kosdaq index declined 0.25%.
Markets in Hong Kong, Indonesia, Australia and New Zealand are closed for public holidays.
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Gift Nifty
The Gift Nifty was trading around 21,418 level as compared to Nifty futures’ previous close of 21,385, indicating a positive start for the Indian stock market indices.
US Stock Market
The US stock market ended mixed close on Friday ahead of the Christmas holiday weekend, with all the three indices notching their eighth consecutive weekly gains.
The Dow Jones Industrial Average declined 18.38 points, or 0.05%, to 37,385.97, while the S&P 500 rose 7.88 points, or 0.17%, at 4,754.63. The Nasdaq Composite ended 29.11 points, or 0.19%, higher at 14,992.97.
Among stocks, Nike shares plunged 11.8%, while Karuna Therapeutics jumped 47.7%.
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Japan November jobless rate flat
Japan’s jobless rate remained unchanged at 2.5% in November from the previous month. The seasonally adjusted unemployment rate matched economists’ median forecast of 2.5% in a Reuters poll. The jobs-to-applicants ratio dipped to 1.28 in November, slightly lower than in October and the median forecast of 1.30.
RBI MPC Minutes
The Reserve Bank of India (RBI) released the minutes of the Monetary Policy Committee (MPC) meeting highlighting that domestic food inflation unpredictability and volatility in crude oil prices and financial markets in an uncertain international environment pose risks to the inflation outlook. Hence, the central bank’s monetary policy continues to remain actively disinflationary, according to the MPC minutes.
Read here: RBI policy focused on disinflation; food price shocks pose risk: 5 key highlights from MPC Minutes
Dollar dips
The US dollar index traded lower weighed down by expectations of the US Federal Reserve easing interest rates next year amid signs of cooling inflation in the world’s largest economy.
The dollar index languished near a five-month low of 101.42 hit last week, and was last at 101.65.
Against the greenback, the euro slipped 0.06% to $1.1019, Sterling was little changed at $1.2701, while the yen rose 0.1% to 142.20 per dollar.
(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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