Indian Markets Set to Open on Positive Note Following Gains in Asian Peers
Indian markets are poised to open on a positive note on Tuesday, following gains in Asian peers and ahead of this week’s U.S. inflation data. The Gift Nifty was trading 59 points higher, indicating a strong start for the benchmark Nifty.
In the U.S., stocks closed essentially unchanged on Monday, with the S&P 500 losing 0.01% and the Nasdaq Composite gaining 0.03%. The Dow Jones Industrial Average rose 0.01%, as all three major U.S. stock indexes were held in check by the highest benchmark U.S. Treasury yields since November.
Industrial metals prices extended their gains on Tuesday, with expectations of a worldwide manufacturing rebound. Asian shares also crept up cautiously ahead of this week’s U.S. inflation data and a crucial European Central Bank meeting.
Futures traders have reduced bets on how much the Federal Reserve will cut rates this year, amid evidence of continued strength in the U.S. economy. Fed funds futures contracts for December reflected expectations of around 60 basis points in rate cuts this year.
On Monday, the Indian stock market benchmark indices closed at their fresh closing highs, led by sectorial tailwinds and Q4 earnings growth expectations. The Sensex surged 0.67% to end at 74,742.50, while the Nifty 50 settled 0.68% higher at 22,666.30.
Oil prices rose in early Asian trading after hopes diminished for a ceasefire in Gaza. Brent crude futures rose to $90.78 a barrel, while U.S. West Texas Intermediate (WTI) crude rose to $86.78.
Gold prices edged up on Tuesday, hovering slightly below a record high as investors awaited the U.S. Federal Reserve’s policy meeting minutes and key inflation data for cues on the timing and depth of interest rate cuts.
The rupee settled on a flat note on Monday at 83.31 against the US dollar, as the support from positive domestic equities was negated by the strength of the American currency in the overseas market.
Foreign institutional investors (FIIs) net sold shares worth ₹684.68 crore, while domestic institutional investors (DIIs) bought ₹3,470.54 crore worth of stocks on April 8, provisional data from the NSE showed.
Overall, the Indian markets are expected to open on a positive note, in line with gains in Asian peers and ahead of key economic data releases. Investors will be closely watching developments in the global markets and economic indicators for further cues on market direction.
