Indian Stock Market Set to Open Higher on Tuesday as Global Gains Boost Investor Sentiment
The Indian stock market is expected to open higher on Tuesday following the positive performance of global peers. The Asian markets saw gains, while the US stocks ended higher overnight, led by a rally in technology stocks.
On Monday, the domestic equity market ended lower, with the Sensex falling 139.58 points, or 0.21%, to close at 65,655.15, and the NSE Nifty 50 ending 37.80 points, or 0.19%, lower at 19,694.00.
According to Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services, the overall market is likely to consolidate in a range as investors focus on the US Federal Open Market Committee (FOMC) meeting minutes, which will be released on Wednesday. Additionally, global participation could be lower due to the Thanksgiving holiday in the United States on Thursday. Investors will also be watching for US existing home sales data, which will be released on Tuesday.
Asian markets traded mostly higher on Tuesday, following the overnight rally on Wall Street fueled by technology stocks. Japan’s Nikkei 225 eased 0.13%, while the Topix fell 0.21%. South Korea’s Kospi gained 0.76% and Kosdaq traded 0.30% higher. Hong Kong’s Hang Seng index futures stood higher at 17,943, compared with the HSI’s close of 17,778.07. Australia’s S&P/ASX 200 rose 0.26%.
The Gift Nifty was trading around the 19,813 level, indicating a positive start for the Indian benchmark indices.
In the US, stock market indices ended higher on Monday, with Nasdaq rallying over 1% thanks to gains in heavyweight Microsoft shares, which hit a record high. The Dow Jones Industrial Average gained 203.76 points, or 0.58%, to close at 35,151.04, while the S&P 500 jumped 33.36 points, or 0.74%, to 4,547.38. The Nasdaq Composite ended 159.05 points, or 1.13%, higher at 14,284.53.
Among the stocks, Microsoft’s share price touched a record high, ending up 2% after the company hired prominent artificial intelligence executives. Shares of Nvidia also jumped 2.3% to close at an all-time high. Bristol Myers Squibb fell 3.8%, while Boeing shares rose 4.6%.
In the currency market, the US dollar traded at multi-month lows against the euro and several other major currencies on Tuesday amid expectations of falling US interest rates next year. The dollar index fell below its 200-day moving average on Monday amidst a rally in the yuan. The euro reached a three-month high of $1.0952 on Monday, and the yuan also hit a three-month high against the dollar.
Microsoft’s share price rallied over 2% to a record closing high on Monday after the company announced the hiring of prominent artificial intelligence executives. Microsoft CEO Satya Nadella stated that Sam Altman, who previously headed OpenAI, would be joining Microsoft to lead a new advanced AI research team. Microsoft will also take on Greg Brockman, another OpenAI co-founder, as well as other researchers.
Crude oil prices eased on Tuesday, reversing the previous day’s rally, as concerns over weaker demand due to a slowing global economy persisted. Brent crude futures fell 19 cents, or 0.2%, to $82.13 a barrel, while US West Texas Intermediate crude was at $77.68 a barrel, down 15 cents, or 0.2%. Both contracts climbed about 2% on Monday after reports suggested that OPEC and its allies would consider additional oil supply cuts when they meet on November 26.
In conclusion, the Indian stock market is set to open higher on Tuesday, tracking gains in global peers. The positive performance of Asian markets and the technology-driven rally in US stocks have boosted investor sentiment. Traders will be monitoring the US FOMC meeting minutes and US existing home sales data for further market direction. Additionally, the hiring of prominent artificial intelligence executives by Microsoft has driven its share price to a record high. Meanwhile, crude oil prices have eased due to concerns over weaker demand.
