Indian stock market: Indian stock market: The equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, following several positive developments over the weekend on the domestic and global front. While Prime Minister Narendra Modi proposed GST reforms in his Independence Day speech, the meeting between US President Donald Trump and Russian President Vladimir Putin raised hopes of an end to the war in Ukraine.
Asian markets traded mixed on Monday, while the US stock market ended higher last week, as investors now await the details of US-Ukraine talks.
This week, investors will focus on key stock market triggers, including GST reforms, progress in US-Russia peace talks, US Federal Reserve meeting minutes, developments in Donald Trump’s tariffs on India, flow of foreign funds, IPO activity, and other key domestic and global macroeconomic data.
The Indian stock market and commodities market were closed for trading on Friday, August 15, on account of 79th Independence Day.
On Thursday, the Indian stock market ended with minor gains amid cautiousness in the holiday-shortened week.
The Sensex gained 57.75 points, or 0.07%, to close at 80,597.66, while the Nifty 50 settled 11.95 points, or 0.05%, higher at 24,631.30.
“The prevailing consolidation suggests that markets have largely digested recent negatives and are now awaiting a trigger for recovery. Additionally, oversold positions in heavyweights across sectors are further supporting this possibility. Participants should maintain a stock-specific trading approach with a focus on risk management,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Monday, with the Japanese indices hitting record high. Japan’s Nikkei 225 benchmark gained 0.11%, while the Topix index added 0.25%. South Korea’s Kospi index dropped 0.85%, and the Kosdaq declined 1.28%. Hong Kong’s Hang Seng index futures indicated a stronger opening.
Gift Nifty Today
Gift Nifty was trading around 24,894 level, a premium of nearly 210 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
US stock market ended mixed on Friday, with the blue-chip Dow Jones ending higher after hitting an intraday record high.
The Dow Jones Industrial Average gained 34.86 points, or 0.08%, to 44,946.12, while the S&P 500 fell 18.74 points, or 0.29%, to 6,449.80. The Nasdaq Composite closed 87.69 points, or 0.40%, lower at 21,622.98. For the week, the S&P 500 rallied 0.94%, the Nasdaq gained 0.81%, and the Dow Jones surged 1.74%.
Among stocks, UnitedHealth share price jumped 12%, Applied Materials shares tumbled 14%, Bank of America stock price dropped 1.6% and Intel share price rallied 2.9%.
Trump – Putin Meeting
US President Donald Trump held a high-stakes summit with Russian President Vladimir Putin in Alaska on August 15, aimed at ending the war in Ukraine. On August 17, Trump also hailed “big progress” on Russia, hours ahead of a meeting with Ukrainian President Volodymyr Zelensky and other European leaders.
S&P Upgrades India
S&P Global upgraded India’s sovereign rating to BBB from its earlier rating of BBB-, while maintaining the economic outlook as “stable”. The rating agency also revised India’s short-term rating to A-2 from A-3, and improved the transfer and convertibility assessment to A- from BBB+.
GST Reforms
Prime Minister Narendra Modi, in his Independence Day speech, announced a major reform in the Goods and Services Tax (GST) structure. The government has proposed scrapping the 12% and 28% slabs, among other reforms. As per the proposal, most of the products and services attracting a tax rate of 12% and 28% will be shifted to the 5% and 18% slabs, respectively.
US-India Trade Talks
The proposed trade agreement between India and the United States has likely been delayed as a visit by US trade negotiators to New Delhi scheduled this month is called off amid rising tensions, Reuters reported.
Gold Prices
Gold prices were steady after hitting a one-week low. Spot gold price rose 0.1% to $3,340.71 per ounce, after hitting its lowest level since August 1. US gold futures for December delivery gained 0.1% to $3,385.70.
Crude Oil Prices
Crude oil prices slipped on easing supply concerns from Russia after the Trump-Putin meeting. Brent crude futures declined 0.21% to $65.71 a barrel, while US West Texas Intermediate crude price fell 0.06% to $62.76 a barrel.
US Dollar
The dollar steadied after last week’s fall. The dollar index advanced slightly to 97.85 against a basket of currencies, after losing 0.4% last week. The dollar rose 0.11% against the yen to 147.34, the euro was little changed at $1.1705, while sterling rose 0.07% to $1.3557.
(With inputs from Reuters)
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