Indian Stock Market Sees Major Shifts: 8 Crucial Developments Impacting the Financial Landscape

• The Indian stock market is expected to open higher on Monday, following a rally in global markets and improved sentiment.
• Asian markets are trading higher, while the US stock market rallied last week after a softer-than-expected US jobs report raised expectations that the US Federal Reserve would not keep interest rates higher for longer and could start cutting rates soon.
• Investors will be closely monitoring key stock market triggers including the developments over ongoing Lok Sabha elections 2024, the Q4 results, domestic and global macroeconomic data, crude oil prices, and other global cues.

Indian stock market set to open higher on Monday, tracking global peers and improved sentiment. Investors eye key market triggers including Lok Sabha elections 2024, Q4 results, and macroeconomic data.

Performance of Domestic Equity Indices

On Friday, the Indian stock market benchmark indices ended around a percent lower, dragged by profit booking across sectors as well as losses in heavyweight stocks. The Sensex dropped 732.96 points, or 0.98%, to close at 73,878.15, while the broader Nifty 50 settled 172.35 points, or 0.76%, lower at 22,475.85.

Outlook for the Indian Stock Market

“Nifty 50 after marking a new high at 22,794 levels, witnessed profit booking and came under pressure. The index witnessed profit booking amid increasing volatility and nervousness at the higher zone. We expect the market to consolidate in a broader range and base to gradually shift higher,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Global Market Cues

Asian markets traded higher tracking a rally on Wall Street after US jobs data. Japan and South Korea’s markets are shut for a public holiday. Hong Kong’s Hang Seng index futures indicated a higher opening. Meanwhile, Australia’s S&P/ASX 200 gained 0.46%.

US Stock Market Performance

The US stock market ended sharply higher on Friday as a softer-than-expected employment report bolstered the case for US Fed rate cuts. The Dow Jones Industrial Average rallied 450.02 points, or 1.18%, to 38,675.68, while the S&P 500 surged 63.59 points, or 1.26%, to 5,127.79. The Nasdaq Composite ended 315.37 points, or 1.99%, higher at 16,156.33.

US Nonfarm Payrolls

US nonfarm payrolls increased by 175,000 jobs last month, the fewest in six months, the Labor Department’s Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls advancing by 243,000. April’s employment gains were below the 242,000 monthly average for the past year.

Conclusion

The Indian stock market is set to open higher on Monday, tracking positive cues from global peers. Investors will be closely monitoring key market triggers including the ongoing Lok Sabha elections 2024, the Q4 results, and macroeconomic data. The market is expected to consolidate in a broader range and base to gradually shift higher.