The Indian stock market is expected to open flat with a negative bias on Monday, influenced by mixed global cues. The Asian markets are trading mixed, while oil prices and Treasury yields have risen. The US stock market ended lower on Friday.
The Sensex and Nifty 50 ended lower for the fourth consecutive session on Friday, due to weak global cues. The US Treasury yields rose to their multi-year high levels, and crude oil prices rose by about a percent. Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services Ltd, stated that the market is expected to remain under pressure in the near term given the global concerns. He suggested investors to have a higher allocation towards defensive and large-caps.
Key driving factors for the domestic markets this week would include trends in global markets, activity of foreign investors, and movement in oil prices. Investors will also be watching for economic data like US & UK GDP numbers, EU inflation, US & China Manufacturing PMI, and India’s Infrastructure output for further direction.
In the Asian markets, Japan’s Nikkei 225 gained 0.24% and the Topix rose 0.16%. South Korea’s Kospi fell 0.24%, while the Kosdaq declined 0.94%. Hong Kong’s Hang Seng index futures were trading slightly lower, and Australia’s S&P/ASX 200 fell 0.45%.
The US stock market ended Friday’s session lower, with all three major stock indexes posting weekly losses. Ford Motor shares gained 1.9% after reports of progress in talks between the striking United Auto Workers union and the automaker. Activision Blizzard added 1.7%, and US-listed shares of Chinese firms including PDD Holdings, JD.com, Li Auto, and Baidu rose between 2% and 4%. Alibaba shares rallied 5% after reports of its logistics arm Cainiao planning to file for a Hong Kong IPO.
The Union Ministry of Finance has projected a 6.5% real GDP growth for FY24, remaining comfortable with symmetric risks. The estimates of national income released by the National Statistical Office (NSO) show real GDP growing at 7.8% in Q1 of FY24.
Foreign portfolio investors (FPIs) have been net sellers in September, pulling out over ₹10,000 crore from Indian equities so far. This is due to rising US bond yields and a stronger dollar. Rising bond yields in the US and a strong dollar index are negative for capital flows and are the primary reasons why FPIs turned net sellers in the cash market this month.
Crude oil prices have resumed their rally and rose for a second day amid worries over tightening supplies. International benchmark Brent futures rose to $93.65 a barrel, while US West Texas Intermediate crude (WTI) gained to $90.41.
Please note that the views and recommendations mentioned above are those of individual analysts or broking companies and not of Mint. It is advisable for investors to check with certified experts before taking any investment decisions.
In conclusion, the Indian stock market is expected to open flat with a negative bias on Monday, influenced by mixed global cues. Investors will be closely monitoring global market trends, foreign investor activity, and oil prices for further direction.