- Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open in green on Wednesday amid mixed global cues.
- Despite encouraging global indications, the benchmarks of the Indian stock market, the Nifty 50 and the Sensex, closed the day down on Tuesday, due to an all-around selloff.
- The recent decline in the Indian stock market is mostly attributed to heavy selling by foreign portfolio investors (FPIs) ahead of the June 4 Lok Sabha election results.
Amid mixed global cues, Indian stock market indices, Sensex and Nifty 50, are expected to open in green. However, despite encouraging global indications, the benchmarks closed down on Tuesday due to an all-around selloff.
Asian Markets
Stocks in Asia struggled to find direction after a slow US session, with investors divided on whether the market can maintain this month’s advance given the prevailing economic conditions, according to a Bloomberg news report. Australia’s and South Korea’s stocks increased while those in Japan declined. Hong Kong futures indicated a flat open.
Gift Nifty Today
Gift Nifty was trading around 22,410.50 level, a premium of nearly 36 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US equities remained stable on Tuesday, according to an AP news report, as Wall Street trade eased after some recent major swings. The Nasdaq Composite fell 16.69 points, or 0.10%, to 16,332.56, while the S&P 500 increased 6.96 points, or 0.13%, to 5,187.70 points. To reach 38,884.26, the Dow Jones Industrial Average increased by 31.99 points, or 0.08%.
Treasury Yields
This month, Treasury yields have been regressing to provide some comfort for the stock market, after surging higher at the beginning of the year as expectations for a Federal Reserve interest rate cut dwindled. As per an AP news report, US The 10-year Treasury’s yield decreased from 4.49% late Monday to 4.45%. Falling from 4.83% to 4.82%, the two-year yield tracks the Fed’s projections more closely.
Dollar Index
The dollar recovered from an early decline and was last seen stronger versus a basket of global currencies, Reuters reports. This recovery against the yen came despite fresh cautions from Japanese officials regarding their readiness to support their national currency. The euro fell 0.14% to $1.0753 while the dollar index increased by 0.3%.
Oil Prices
The American Petroleum Institute’s data indicated a rise in US crude and fuel stocks, a sign of poor demand, according to market sources, which caused oil prices to drop during the first part of Wednesday’s Asian trading session, according to a report by Reuters. By 00:20 GMT, the price of a barrel of Brent crude oil futures had dropped 21 cents, or 0.3%. West Texas Intermediate oil futures for the United States dropped 0.2%, or 13 cents, to $78.25 a barrel.
Conclusion
The Indian stock market indices, Sensex and Nifty 50, are expected to open in green amid mixed global cues. However, despite encouraging global indications, the benchmarks closed down on Tuesday due to an all-around selloff. The recent decline in the Indian stock market is mostly attributed to heavy selling by foreign portfolio investors (FPIs) ahead of the June 4 Lok Sabha election results.
