Gift Nifty signals a negative start for the Indian stock market today.
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The Indian stock market is expected to open lower on Wednesday, following weakness in global markets amid cautiousness over elevated crude oil prices and surging bond yields as aggravated inflation concerns amid the escalating US-Iran war in the Middle East. The trends on Gift Nifty also signal a negative start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 24,040 level, a discount of nearly 50 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity indices ended flat with a negative bias, with the benchmark Nifty 50 closing below 24,100 level.
“We recommend continuing with ‘sell on rise’ in the Nifty and maintaining stock-specific approach based on the sectoral performance, while adhering to strict risk and position management,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are five key factors to watch ahead of the opening of the Indian stock market today:
Asian Markets
Asian markets traded lower on Wednesday, following overnight losses on Wall Street. Japan’s Nikkei 225 declined 2.48% while the Topix slipped 2.03%. South Korea’s Kospi dropped 2.21%, while the Kosdaq fell 0.98%. Hong Kong Hang Seng index futures indicated a lower opening.
Wall Street
US stock market extended decline on Tuesday, amid a spike in crude oil prices and Treasury yields on fading hopes for a near-term solution to the US-Iran war.
The Dow Jones Industrial Average plunged 418.97 points, or 0.79%, to 52,766.93, while the S&P 500 dropped 54.67 points, or 0.71%, to 7,631.47. The Nasdaq Composite closed 271.11 points, or 1.03%, lower at 26,099.77.
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US-Iran War
The US-Iran war escalated sharply, with American forces carrying out a fresh wave of strikes and the Iranians saying they have retaliated. US Central Command said that the targets in the now-completed operation included “air defense sites, radar systems, maritime assets and facilities, mine laying capabilities, and communications sites” associated with the Islamic Revolutionary Guard Corps.
Bond Yields
Global bond markets witnessed a sharp selloff on Tuesday, amid concerns over rising inflation and government debt levels. The benchmark US 10-year Treasury yield surged 3.8 bps to 4.796%, its highest level since 2023. Japan’s 10-year yield hit 3% for the first time since 1996. Yields hit their highest in 15 years in Germany and their highest since 2008 in the UK.
Crude Oil Prices
Crude oil prices extended rally after the fresh US attacks on Iran intensified supply disruption concerns. Brent crude futures surged 1.76% to $96.32 a barrel, while US West Texas Intermediate crude futures gained 1.66% to $91.72.
ALSO READ: Trade Setup For Sept 2: Nifty Support Stays At 24,000 In Range-Bound Market | Check Key Levels
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