Indian Stock Market Poised for Higher Open as Global Cues Improve

Market Watch: Indian Stock Market Expected to Open Higher

The Indian stock market is expected to open on a positive note on Wednesday, following encouraging global market cues. The domestic equity benchmark indices, Sensex and Nifty50, are likely to see a higher opening, driven by gains in Asian markets and a rally in tech stocks on Wall Street.

Global Market Cues

Asian markets traded higher on Wednesday, with Japan’s Nikkei225 gaining 0.83% and South Korea’s Kospi index rallying 1.57% to hit a 10-month high. The US stock market ended higher on Tuesday, led by gains in technology stocks and optimism over trade talks between the United States and its trading partners.

Key Market Indicators

• Gift Nifty: Trading around 24,730 level, a premium of nearly 55 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
• US Jobs Openings: Increased in April, but layoffs picked up, with job openings rising 191,000 to 7.391 million, according to the Job Openings and Labor Turnover Survey (JOLTS) report.
• US Factory Orders: New orders for US-manufactured goods dropped sharply in April, falling 3.7% after an unrevised 3.4% jump in March.
• Japan Services PMI: Japan’s service-sector activity growth slowed in May on weaker demand, with the final au Jibun Bank Japan Services purchasing managers’ index (PMI) falling to 51.0 in May from 52.4 in April.
• Crude Oil Prices: Fell after two days of gains, with Brent crude oil prices declining 0.17% to $65.52 a barrel and US West Texas Intermediate (WTI) crude futures down 0.20% to $63.28.

Market Outlook

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted that uncertainty over global trade settlements and the ongoing conflict between Russia and Ukraine are prompting investors to slash their equity bets at regular intervals. The market is likely to remain volatile, with investors closely monitoring global cues and economic data.

Technical Analysis

The Sensex and Nifty50 are expected to open higher, with the Gift Nifty indicating a positive start. However, the market’s upside potential may be limited by concerns over stretched valuations and foreign capital outflows.

Conclusion

The Indian stock market is poised for a higher open on Wednesday, driven by positive global cues. However, investors are advised to remain cautious and monitor global developments, economic data, and corporate earnings reports for further market direction.