Indian Stock Market on Edge: 8 Key Shifts Overnight You Need to Know!

The Indian stock market, with indices Sensex and Nifty 50, is expected to open on a subdued note on Tuesday due to mixed global cues.

Asian Markets

Asian shares traded flat. The US market was closed for a holiday. Investors paid attention to comments from European Central Bank officials and other economic data.

On Monday, Indian markets ended flat despite hitting record highs during the day due to profit booking. The Sensex dropped 19.89 points (0.03%) to close at 75,390.50, and the Nifty 50 fell 24.65 points (0.11%) to 22,932.45.

Market Sentiment

“There’s a question about whether this bullish trend will continue. Monday saw cautious trading, expecting more volatility soon. With Nifty slightly lower, there’s a sense of caution,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Global Market Cues for Sensex Today

1. Asian Markets: Asian markets traded within a range on Tuesday. The European Central Bank’s comments suggested possible rate cuts. Japan’s Nikkei 225 and Topix were flat. South Korea’s Kospi was slightly higher, and the Kosdaq gained 0.42%. Hong Kong’s Hang Seng index futures indicated a weaker opening.
2. Gift Nifty Today: Gift Nifty was around 23,020, about 20 points higher than Nifty futures’ previous close, suggesting a flat-to-positive start for Indian indices.
3. Wall Street: US markets were closed on Monday. Nasdaq 100 futures rose 0.4% to a record high, while European markets gained slightly.
4. T+1 Trading Cycle: The US stock market will switch to a T+1 (Trade + 1) trading cycle from Tuesday, shortening the settlement period from two days to one.
5. ECB: European Central Bank officials are advocating for an interest rate cut next week. ECB member Olli Rehn mentioned that inflation in the euro area is falling steadily, making it a good time to start cutting rates.
6. China Central Bank: The People’s Bank of China will conduct a 5 billion yuan 3-month central bank bill swap on May 28.
7. Oil Prices: Crude oil prices rose due to tensions in the Middle East. West Texas Intermediate gained 1.22% to $78.67 a barrel, while Brent remained flat at $83.06.
8. Dollar: The US dollar eased slightly but stayed within tight ranges ahead of key inflation data. The US dollar index dipped 0.01% to 104.55 against a basket of currencies.