Before Market Opens: 9 essential things to know at 9 am on March 5, 2024

Before Market Opens: Indian markets are likely to open in the red on Tuesday as Chinese stocks stumbled, dragging Asian peers with them. Gift Nifty was trading 34 points lower, indicating a negative start for benchmark Nifty. Let's take a look at some key cues before the market opens today:

US stock market indices backed off from record highs to end lower on Monday as US Treasury yields ticked higher ahead of key jobs data and Federal Reserve Chair Jerome Powell’s congressional testimony later in the week. The Dow Jones Industrial Average declined 97.55 points, or 0.25%, to close at 38,989.83, while the S&P 500 fell 6.13 points, or 0.12%, to 5,130.95. The Nasdaq Composite ended 67.43 points, or 0.41%, lower at 16,207.51.

Chinese stocks stumbled on Tuesday, dragging Asian peers with them, as investors showed their disappointment at Beijing's plans to support the economy as its week-long annual session of parliament, the National People's Congress, got underway. Equities around the rest of the region were also on the back foot following a retreat from record highs on Wall Street overnight on signs the U.S. Federal Reserve is in no hurry to cut interest rates. U.S. stock futures also pointed lower. Japan's Nikkei slid 0.59% after reaching a fresh peak on Monday, while MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.4%. Chinese blue chips lost 0.2%, and Hong Kong's Hang Seng slumped 1.3%.

On Monday, the Indian stock market indices extended gains for the fourth consecutive session, ending at their fresh closing highs. The Sensex gained 66.14 points, or 0.09%, to close at 73,872.29, while the Nifty 50 settled 27.20 points, or 0.12%, higher at 22,405.60.

At 8:25 am, Gift Nifty was trading 34 points or 0.15 percent lower at 22,485, indicating a negative opening for the Indian markets.

Oil prices fell for a second day on Tuesday as pledges by China, the world's biggest crude importer, to transform its economy amid stuttering growth since the COVID pandemic failed to impress investors concerned about slower consumption. Brent futures for May fell 3 cents to $82.77 a barrel by 0159 GMT, while U.S. West Texas Intermediate (WTI) fell 11 cents, to $78.63. Brent settled 75 cents lower at $82.80 a barrel on Monday, while WTI settled down $1.24 at $78.74 a barrel.

Tata Motors Ltd (TML) on March 4 informed the stock exchanges of its decision to demerge its businesses into two separate listed entities, namely the commercial vehicles (CV) and passenger vehicles (PV) businesses. "The demerger is a logical progression of the subsidiarisation of PV and EV businesses done earlier in 2022 and shall further empower the respective businesses to pursue their respective strategies to deliver higher growths with greater agility while reinforcing accountability," said the carmaker.

Foreign institutional investors (FIIs) net sold shares worth ₹564.06 crore, while domestic institutional investors (DIIs) bought ₹3,542.87 crore worth of stocks on March 4, provisional data from the NSE showed.

The rupee appreciated 2 paise to settle at 82.89 (provisional) against the U.S. dollar on March 4, tracking a weak American currency overseas and positive equity market sentiment.

Gold rate today witnessed some selling pressure on Monday after the spread of news reports saying the US Fed chief Jerome Powell to re-iterate hawkish stance on interest rates while testifying before the US Congress this week. Gold price on the Multi Commodity Exchange (MCX) opened lower at ₹63,401 per 10 gm level but attracted buying at lower levels and climbed to an intraday high of ₹63,502 per 10 gm. In the international market, spot gold price is oscillating around $2,080 per ounce level.