Indian stock market: The domestic equity market is expected to open lower on Wednesday, extending the decline, following weak global market cues.
The Asian markets traded lower, while the US stock market ended mixed overnight.
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Investors will focus on the US Federal Reserve meeting minutes and India’s manufacturing PMI data on Wednesday for further cues.
On Tuesday, the domestic equity indices Sensex and Nifty 50 ended in negative territory amid concerns over escalating geopolitical tensions and a significant jump in crude oil prices.
The Sensex fell 379.46 points, or 0.53%, to close at 71,892.48, while the Nifty 50 ended 76.10 points, or 0.35%, lower at 21,665.80.
“Markets are witnessing profit booking in January, after 2 consecutive months of sharp up-move. Nifty gained 5% in Nov and 8% in December. Also, investors turn cautious ahead of the FOMC meeting minutes to be released on Wednesday and rising tensions in the Red Sea,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
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Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Wednesday tracking overnight weakness on Wall Street indices.
Japan’s markets are closed until January 4. South Korea’s Kospi declined 1.36%, while the Kosdaq fell 1%. Hong Kong’s Hang Seng index futures pointed to a weaker open. Australia’s S&P/ASX 200 fell 1%.
Gift Nifty
Gift Nifty was trading around 21,680 level as against Nifty futures’ previous close of 21,754, indicating a weak start for the Indian stock market today.
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US Stock Market
The US stock market indices ended mostly lower on Tuesday, the first trading session of 2024, dragged by selling in technology stocks amid a rise in Treasury yields.
The S&P 500 declined 27 points, or 0.57%, to end at 4,742.83 points, while the Nasdaq Composite fell 245.41 points, or 1.63%, to 14,765.94. The Dow Jones Industrial Average ended 25.5 points, or 0.07%, higher at 37,715.04.
Among stocks, Apple shares dropped 3.6% after Barclays downgraded the tech giant to “underweight”, citing weakening iPhone demand. Nvidia, Meta Platforms and Microsoft fell between 1.4% and 2.7%.
US Manufacturing PMI
The S&P Global’s final reading of US manufacturing activity for December came in at 47.9, down from 49.4 in November and below the estimates of 48.2.
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US Treasury Yields
US Treasury yields rose to two-week highs amid lowered expectations for rate cuts in 2024.
The yield on 10-year notes ticked above 4.000% to a two-week high before easing slightly to 3.937%.
Oil Prices
Crude oil prices ended lower on easing concerns that tensions in the Red Sea will disrupt supplies.
Brent crude settled at $75.89, down by $1.15 or 1.5%, while US West Texas Intermediate crude ended at $70.38 a barrel, down by $1.27 or 1.8%.
(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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