Nifty futures fall over 20 points from Monday’s close
Asian stocks fall on Fed tightening uncertainty
Domestic equity indices rose for the third straight session on Monday
Oil prices fall on demand concerns
Gold weakens as dollar recovers
MUMBAI, Nov 7 (Reuters) – Benchmark domestic market indices are expected to open lower on Tuesday, with the GIFT Nifty index down more than 20 points from Monday’s Nifty futures close and following weak global cues.

Asian markets

Asian stocks fell on fresh uncertainty over the Federal Reserve’s tightening strategy, while gains in U.S. equities were capped by rising bond yields.

South Korean and Japanese stocks opened lower, with the Kospi index down about 2%. Hong Kong stock futures were down in early trading, as were U.S. equity contracts.

Domestic market opens subdued on weak global markets

The focus in Asian markets will be on the Reserve Bank of Australia, which is expected to raise interest rates to end a pause of four rate hikes as evidence of the country’s growing economic resilience suggests more price cooling measures are needed. Meanwhile, China is about to release important trade statistics that will help reveal whether the world’s second-largest economy is waking up from its post-pandemic coma.

Domestic Markets

Domestic equity indices rose for a third consecutive session on Monday on improved investor risk appetite and expectations that the interest rate hiking cycle is coming to an end and that rate cuts may be lower than expected.

The Shanghai Sensex, comprising 30 stocks, closed up 594.91 points at 64,958.69, while the NSE Nifty 50 index gained 181.15 points, or 0.94 percent, to end at 19,411.75.

Vinod Nair, head of research at Geojit Financial Services, said the market continues to be optimistic as weak US jobs data and expectations of a modest tightening of monetary policy by the Federal Reserve have boosted market sentiment. With most of the headwinds being global, investor sentiment has shifted to domestic companies, which have seen healthy holiday demand.

“Earnings distribution for the second quarter has been favorable so far, with capital goods, financials and auto stocks receiving more attention. We expect this momentum to continue in the second half of fiscal 2024 as well, but thanks to the recent rise in commodity prices,” Nair added.

Fine Gifts

Shares of Nifty Futures are trading more than 20 paise lower than Monday’s close on the back of a weak global economy.

Rupak De, senior technical analyst at LKP Securities, said the Nifty 50 index maintained a positive trend throughout the day. On the upside, the rally met resistance at the 21-day moving average (21DMA). The trend is expected to continue sideways in the near term. A break above 19,450 may pave way for a nice rally. Lower support is at 19,300.

WALL STREET

U.S. Treasury yields rose on Monday following last week’s sharp rise in stocks and bonds on expectations that interest rates will soon be cut, a gauge of global stock markets, Reuters reported. All three major Wall Street stock indexes rose. the yield on the 10-year Treasury note rose 9.1 basis points to 4.649 percent, partially offsetting the benchmark bond’s 29-basis-point decline last week, the biggest one-week drop since March.

The Nasdaq Composite gained 0.3 percent, the Standard & Poor’s 500 added 0.18 percent and Wall Street’s Dow Jones Industrial Average rose 0.1 percent.

Crude oil.

Oil prices fell on Tuesday, giving back most of the previous session’s gains on concerns about weak demand from China, Reuters reported. Investors are eyeing trade data scheduled for release later in the day to determine demand from the world’s second-largest oil consumer.

U.S. West Texas Intermediate crude futures were down 23 cents, or 0.3 percent, to $80.59 a barrel as of 01:27 GMT, while Brent crude futures were down 23 cents, or 0.3 percent, to $84.95 a barrel.

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