Here's a quick rundown of seven important developments affecting the Indian stock market overnight, including updates on Gift Nifty, oil prices, and India's fiscal deficit.Sensex and Nifty Set for a Soft Start as Global Markets Signal Weakness
On the first trading day of 2025, Indian equity indices Sensex and Nifty are likely to open in the red, reflecting cautious sentiments from global markets. The last trading session of 2024 ended on a subdued note, with the Sensex dipping 109 points to settle at 78,139.01 and the Nifty closing flat at 23,644.80.
Global Market Signals:
Asian Markets: Major Asian stock exchanges, including those in China, Japan, and South Korea, remain closed for the New Year holiday, leaving limited regional cues.
Gift Nifty Trends: Gift Nifty indicates a tepid start, trading 72 points below its previous close, signaling a bearish opening for domestic markets.
Wall Street Slips: U.S. indices wrapped up 2024 with losses. The Dow fell 0.07%, the S&P 500 dropped 0.43%, and the Nasdaq declined 0.90% in a thinly traded session. Key stocks like Nvidia, Apple, and AMD saw declines, while energy giants Exxon Mobil and Chevron posted gains.
Other Influencing Factors:
Oil Prices: Crude prices climbed slightly on Tuesday, with Brent crude at $74.64 per barrel. However, 2024 saw an overall 3% drop in oil prices, marking the second consecutive year of decline.
Core Sector Growth: India’s core sector output rose by 4.3% in November 2024, driven by increased production in cement, coal, and electricity.
Rupee Weakness: Persistent pressure on the rupee against the dollar adds to market uncertainty, keeping investors cautious.
US Treasury Yields: Yields climbed, with the 10-year yield gaining 3.4 basis points to 4.579%, reflecting global economic concerns.
Outlook:
Market volatility is expected in the coming weeks as global and domestic cues weigh on sentiment. Investors are advised to tread cautiously amid the mixed economic landscape.