The Indian stock market is expected to open on a strong footing Tuesday led by positive global cues as Asian markets traded higher, while the US stocks also gained overnight.
Investors await the release of key economic data this week that will guide the market going ahead.
On Monday, the domestic benchmark equity indices Sensex and Nifty ended higher, snapping two-day losing streak, amid largely positive global cues after China announced steps to give a boost to its market.
“Markets are likely to remain in consolidation mode this week amidst key events including the release of domestic GDP data, monthly expiry, and domestic and global macroeconomic data. Also the 7% deficit in the Jun-Sept monsoon could keep upside limited,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher following overnight gains on Wall Street ahead of key economic data releases.
Japan’s Nikkei 225 gained 0.28% and the Topix rose 0.15%. South Korea’s Kospi added 0.27% and the Kosdaq gained 0.17%.
Hong Kong’s Hang Seng index futures were higher at 18,300 as compared with the HSI’s close of 18,130.74
Australia’s S&P/ASX 200 was up 0.11%.
Meanwhile, Gift Nifty was trading at 19,350 as against Nifty futures’ previous close of 19,314.55, indicating a positive start for the Indian benchmark indices.
Wall Street
US stocks ended higher while Treasury yields retraced on Monday ahead of key economic data that would give cues on the Federal Reserve’s interest rate decision in September.
The Dow Jones Industrial Average rose 217.19 points, or 0.63%, to 34,559.98, while the S&P 500 gained 27.6 points, or 0.63%, to 4,433.31. The Nasdaq Composite ended 114.49 points, or 0.84%, higher at 13,705.13.
Among stocks, Nvidia share price gained 1.78%, while Meta Platforms shares rose 1.67%. 3M shares jumped over 5%, while Goldman Sachs gained 1.8%.
Japan Unemployment Rate Rises
Japan’s unemployment rate rose for the first time in four months in July as the jobless rate increased to 2.7% from June, the ministry of internal affairs said. The number of workers fell by 100,000 from the previous month, while those without jobs rose by 110,000.
Separate data showed the jobs offers-to-applicants ratio declined to 1.29 in July from 1.30.
Goldman Sachs to sell wealth advisory unit to Creative Planning
Goldman Sachs said it has struck a deal to sell part of its wealth business to Creative Planning LLC, an independent wealth manager. The Wall Street bank did not disclose the sale price but said that the sale is expected to close in the fourth quarter and result in a gain.
The sale is a part of a strategy in which the bank will exit some businesses and focus its wealth offering on targeting the super rich.
The latest sale is part of a shift in strategy after CEO David Solomon reorganized the firm into three units last year and scaled back ambitions for its consumer business, which lost $3 billion in the last three years, Reuters reported.
Evergrande shares plunge 79%, loses $2.2 billion in value
Evergrande Group, the world’s most indebted real estate developer, lost $2.2 billion, or 79% of its market value on Monday when it resumed trading following a 17-month suspension to restructure its offshore debt.
Evergrande, which is in the process of getting approvals for its debt restructuring plan, said on Monday that it would postpone by a month meetings for these creditors to vote on the proposal to give more time “to maximise creditor engagement and support informed-decision making”.
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Updated: 29 Aug 2023, 07:02 AM IST