Indian stock market: The domestic equity market is expected to open lower on Monday tracking weakness in global peers amid rising geopolitical tensions in the Middle East after Iran’s unprecedented attack on Israel during the weekend.
Asian markets traded sharply lower while the US stock market closed lower last week amid concerns over high interest rates.
While markets are rattled by sticky inflation and the prospect of higher-for-longer interest rates, the escalation of the Middle East crisis risks could further weigh on investors’ risk appetite and inject fresh volatility into markets.
Investors will watch out for several stock market triggers including Q4 results, general elections 2024, the Israel-Iran conflict, domestic and global economic macroeconomic data, crude oil prices, and global market cues will guide the stock market direction this week.
On Friday, the Indian stock market indices ended a percent lower each dragged by selling across the board amid weak global cues.
The Sensex plunged 793.25 points, or 1.06%, to close at 74,244.90, while the Nifty 50 settled 234.40 points, or 1.03%, lower at 22,519.40.
“Indian equities could see temporary short-term headwinds from the US Fed easing being pushed into CY25 and hardening commodity prices due to adverse geopolitics. Fed rates have minimal impact as the India story is largely internally driven with a capex turnaround and a recovery in domestic manufacturing. A large and sustained commodity price rally is a more material risk, but that looks unlikely for now,” said Seshadri Sen, Head Of Research And Strategist, Emkay Global Financial Services.
He believes the upcoming Q4FY24 results season is seen to be on track, especially in sectors like consumer discretionary, and this is reflected in resilient FY25 EPS forecasts.
“We maintain our positive view on markets with a year-end Nifty target of 24,000 and expect SMIDs to continue their outperformance,” Sen added.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — April 15
Here are key global market cues for Sensex today:
Asian Markets
Asian markets slipped on Monday tracking losses in US equities amid ratcheting tensions in the Middle East.
Japan’s Nikkei 225 declined 1.28%, while the Topix dropped 0.97%. South Korea’s Kospi fell 0.92% and the Kosdaq plunged 1.58%. Hong Kong’s Hang Seng index futures indicated a weak opening.
Read here: Asian Stocks Fall in Wake of Iran Attack on Israel: Markets Wrap
Gift Nifty Today
Gift Nifty was trading around the 22,465 level, a discount of nearly 140 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.
Wall Street
US stock market indices ended sharply lower on Friday after earnings of major US banks failed to impress and looming geopolitical tensions.
The Dow Jones Industrial Average declined 475.84 points, or 1.24%, to 37,983.24, while the S&P 500 fell 75.65 points, or 1.46%, to 5,123.41. The Nasdaq Composite closed 267.10 points, or 1.62%, lower at 16,175.09.
Read More: Indian stock market: 10 key things that changed for market over weekend – Gift