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Business News/ Markets / Stock Markets/  5 things that changed for market over the weekend: Gift Nifty, oil prices, FII selling to global cues for Sensex today
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5 things that changed for market over the weekend: Gift Nifty, oil prices, FII selling to global cues for Sensex today

This week, trends in global markets, activity of foreign investors and movement in oil prices would be key driving factors for the Indian stock market indices Sensex and Nifty 50.

Japan’s Nikkei 225 gained 0.24% and the Topix rose 0.16%. (Image: AP)Premium
Japan’s Nikkei 225 gained 0.24% and the Topix rose 0.16%. (Image: AP)

The Indian stock market indices, Sensex and Nifty 50 are expected to open flat with a negative bias on Monday amid mixed global cues.

The Asian markets are trading mixed while the oil prices and Treasury yields rose. The US stock market ended lower on Friday.

This week, trends in global markets, activity of foreign investors and movement in oil prices would be key driving factors for the domestic markets.

The two benchmark indices, Sensex and Nifty 50 ended lower for the fourth consecutive session on Friday weighed down by weak global cues as the US Treasury yields rose to their multi-year high levels and crude oil prices rose by about a percent.

“We expect the market to remain under pressure in the near term given the global concerns. Thus, we suggest investors to have higher allocation towards defensive and large-caps. Investors would look for economic data like US & UK GDP numbers, EU inflation, US & China Manufacturing PMI, and India’s Infrastructure output which is due this week for further direction," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — September 25

Here are key global market cues and domestic factors for Sensex today:

Asian Markets

Asian markets traded mixed, while Treasury yields gained as investors weighed the higher-for-longer stance by the US Federal Reserve. Investors will watch out for key inflation data across the Asian region this week.

Japan’s Nikkei 225 gained 0.24% and the Topix rose 0.16%. South Korea’s Kospi fell 0.24%, while the Kosdaq declined 0.94%.

Hong Kong’s Hang Seng index futures were trading at 18,040, compared with the HSI’s close of 18,057.45.

Australia’s S&P/ASX 200 fell 0.45%.

Meanwhile, Gift Nifty was trading at around 19,695 as against Nifty futures’ Friday’s close of 19,705, indicating a tepid start for the Indian benchmark indices.

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Wall Street

The US stock market ended Friday’s volatile session lower with all three major stock indexes posting weekly losses.

The Dow Jones Industrial Average declined 106.58 points, or 0.31%, to 33,963.84, while the S&P 500 fell 9.94 points, or 0.23%, to 4,320.06. The Nasdaq Composite ended 12.18 points, or 0.09%, lower at 13,211.81.

Among stocks, Ford Motor shares gained 1.9% after reports of progress in talks between the striking United Auto Workers union and the automaker.

Activision Blizzard added 1.7%, while US-listed shares of Chinese firms including PDD Holdings, JD.com, Li Auto and Baidu rose between 2% and 4%. 

Alibaba shares rallied 5% after Bloomberg reported that the company's logistics arm Cainiao was planning to file for a Hong Kong IPO as soon as next week.

Also Read: Wall Street week ahead: Investors’ key focus on inflation trend, other economic reports

Finance Ministry projects 6.5% real GDP growth for FY24

The Union Ministry of Finance on September 22 released the Monthly Economic Review for August 2023, stating to remain comfortable with a 6.5% real GDP growth estimate for FY24 with symmetric risks.

The report mentioned the estimates of national income released by the National Statistical Office (NSO) show real GDP growing at 7.8% in Q1 of FY24.

FPI outflow crosses 10,000 crore mark in September

Foreign portfolio investors (FPIs) continue to be net sellers this month, pulling out over 10,000 crore from Indian equities so far in September on rising US bond yields and a stronger dollar. FPIs have sold 10,164 crore worth of Indian equities and offloaded a total of 10,100 crore as of September 22, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data.

Read here: FPIs offload 10,164 crore in Indian equities this month; What's in it for domestic investors?

Rising bond yields in the US and strong dollar index are negative for capital flows and are the primary reason why FPIs turned net sellers in the cash market this month. Strength in the US dollar index and the US 10-year bond yield remaining high are short-term negatives for FPI flows to emerging markets like India, according to analysts.

Oil resumes rally

Crude oil prices resumed rally and rose for a second day amid worries over tightening supplies. Crude oil has jumped almost 30% since end-June, and is set for its biggest quarterly gain since March 2022.

International benchmark Brent futures rose 0.41% to $93.65 a barrel, while US West Texas Intermediate crude (WTI) gained 0.42% to $90.41.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 25 Sep 2023, 07:15 AM IST
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