Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open higher on Wednesday, following gains in global markets.
Asian markets traded higher, while the US stock market rallied overnight as investors assessed US President Donald Trump’s tariff stance.
On Tuesday, the Indian stock market crashed as sell-off intensified amid cautiousness after US President Donald Trump unveiled plans for trade tariffs on neighbouring countries shortly after taking office.
The Sensex cracked 1,235.08 points, or 1.60%, to close at 75,838.36, while the Nifty 50 settled 320.10 points, or 1.37%, lower at 23,024.65.
“Markets were on a cautious mode in the past few sessions, but witnessed frenzied selling on Tuesday as investors now fear that Trump’s inaugural speech to safeguard America's interest could hurt economic prospects of many countries, including India, going ahead. While foreign investors continue to offload domestic shares at will, any further rise in US bond yields could trigger massive selling,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Here are key global market cues for Sensex today:
Asian markets traded higher on Wednesday following overnight rally on Wall Street. Japan’s Nikkei 225 rose 1,38%, while the Topix gained 0.78%. South Korea’s Kospi rose 0.42%, while the Kosdaq advanced 0.8%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty was trading around 23,153 level, a premium of nearly 50 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
US stock market ended higher on Tuesday, with the S&P 500 and the Dow closing at their highest levels in more than a month, after Donald Trump was sworn-in as US president.
The Dow Jones Industrial Average rallied 537.98 points, or 1.24%, to 44,025.81, while the S&P 500 surged 52.58 points, or 0.88%, to 6,049.24. The Nasdaq Composite closed 126.58 points, or 0.64%, higher at 19,756.78.
Netflix share price jumps 14.29% in extended trade. Nvidia stock price gained 2.27%, while Apple shares declined 3.2%. 3M shares rose 4.2%, while Ford stock added 2.5%, and General Motors shares advanced 5.7%.
US President Donald Trump vowed to hit the European Union with tariffs and said his administration was discussing a 10% punitive duty on Chinese imports because fentanyl is being sent from China to the US via Mexico and Canada. Trump had previously threatened a 10% duty on Chinese imports because of the trade, but realigned that with the February 1 deadline.
Netflix shares jumped over 14% in extended trade on price hikes and record subscriber gains, lifting its stock market value by almost $50 billion. The company added 18.9 million subscribers in its fourth quarter to bring its total global subscriber base to nearly 302 million customers.
The company reported per-share earnings of $4.27, beating Wall Street's forecast of $4.20 per share. Revenue rose 16% over the same time a year ago, to $10.2 billion, compared with Wall Street's estimates of $10.1 billion for the quarter, according to LSEG, Reuters reported.
The US dollar strengthened against most major peers after US President Donald Trump reiterated he was weighing a 10% tariff on China. The dollar index, which measures the currency against six peers, was flat at 108.01.
Crude oil prices extended losses. Brent crude oil fell 0.04% to $79.26 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 2,26% to $75.89.
(With inputs from Reuters)
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