Here are some key factors influencing the Indian stock market today:
Global Market Cues: Indian benchmark indices, Sensex and Nifty 50, are expected to start on a muted note, tracking mixed signals from global markets.
Gift Nifty: Gift Nifty was trading around 24,821, a discount of nearly 17 points from the Nifty futures' previous close, indicating a muted start for the Indian stock market indices.
US Market Performance: The US stock market closed lower on Tuesday after some disappointing corporate earnings, while investors awaited the Federal Reserve policy. The Dow Jones Industrial Average declined 0.46%, the S&P 500 fell 0.30%, and the Nasdaq Composite closed 0.38% lower.
Asian Markets: Asian markets traded mixed amidst uncertainties related to US tariffs. Japan's Nikkei 225 fell 0.17%, while the Topix was flat. South Korea's Kospi gained 0.53%, and the Kosdaq rose 0.42%. Hong Kong's Hang Seng Index futures indicated a weaker opening.
India-US Trade Talks: Domestic equities closed sharply lower on Monday due to heavy selling by foreign portfolio investors (FPIs) and uncertainty around India–US trade talks weighed on market sentiment. Progress in the India-US trade deal is expected to influence broader market sentiment.
US-China Trade Relations and Trump Tariffs: Investors are closely watching trade negotiations. Renewed tariff threats from the U.S. President Donald Trump are causing investors to remain cautious. Trump's announcement of steep import tariffs on several trading partners has introduced uncertainty over U.S. trade policies.
US Federal Reserve Policy: Investors are awaiting the outcome of the US Federal Reserve's policy meeting. The US central bank is widely expected to maintain current interest rates, despite President Donald Trump intensifying pressure on Fed Chair Jerome Powell to lower borrowing costs. The Federal Open Market Committee Meeting (FOMC) is scheduled, and the interest rate is likely to remain unchanged. Fed Chair Jerome Powell will provide insights on the US economy, inflation, and the impact of tariffs.
Domestic Market Performance: On Tuesday, the Indian stock market ended higher, lifted by fag-end short-covering, with the Nifty 50 closing above 24,800 level. The Sensex gained 0.55% to close at 81,337.95, while the Nifty 50 settled 0.57% higher at 24,821.10. On Monday, Indian indices closed in the red: Sensex slumped by 0.70% to close at 80,891.02; Nifty 50 moved down by 0.63% to settle at 24,680.90.
