Indian Stock Market Braces for Flat Opening Amid Global Headwinds
Indian stock market benchmark indices, the Sensex and Nifty 50, are likely to open flat on Tuesday. This cautious start follows weak global market signals and renewed trade tensions. Investors are watching closely as international developments weigh on sentiment.
Global Markets Set Negative Tone
Asian markets traded lower on Tuesday morning. The decline came after US President Donald Trump announced tariffs on eight European countries over Greenland. This move dampened investor risk appetite across the region.
Japan's Nikkei 225 fell 0.7 percent. The Topix index declined 0.52 percent. South Korea's Kospi dropped 0.41 percent. The Kosdaq traded flat. Hong Kong's Hang Seng index futures pointed to a slightly higher opening.
Previous Session Recap
On Monday, the Indian stock market ended lower. The Sensex declined 324.17 points, or 0.39 percent, to close at 83,246.18. The Nifty 50 settled 108.85 points, or 0.42 percent, lower at 25,585.50. Global trade tensions escalated following the tariff announcement.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, shared his outlook. He said markets are expected to trade sideways going ahead. They will track global cues and ongoing earnings. Any escalation on the geopolitical front would remain a key overhang.
Key Global Market Cues for Sensex Today
Several international factors are influencing market sentiment. Here are the main points investors are monitoring.
Gift Nifty Indicates Flat Start
Gift Nifty was trading around the 25,608 level. This represents a premium of nearly 12 points from the Nifty futures' previous close. The reading suggests a flat opening for Indian stock market indices.
Wall Street Futures Point Lower
The US stock market was closed on Monday for Martin Luther King Jr. Day. Stock futures pointed to a negative session on Wall Street for Tuesday. The decline reflects concerns over trade policies.
China Holds Lending Rates Steady
China left its benchmark lending rates unchanged for an eighth consecutive month in January. The one-year loan prime rate remained at 3.0 percent. The five-year LPR was unchanged at 3.5 percent.
Citi Downgrades European Equities
Citi downgraded continental Europe to "neutral" for the first time in over a year. The bank cited the latest step-up in transatlantic tensions and tariff uncertainty. These factors dented the near-term investment case for European equities.
Japanese Bond Yield Hits Milestone
Japan's 40-year bond yield rose to 4 percent. This marks the highest level since its debut in 2007. The 40-year rate jumped 5.5 basis points. It is the first time Japanese government bond yields have reached the 4 percent level since the 20-year yield in December 1995.
Gold and Silver Prices Surge
Gold prices traded near an all-time peak. Silver prices hit a record high on US-Europe trade tensions. Silver briefly touched a record of $94.7295 an ounce on Tuesday. Gold was near $4,670.
US Dollar Weakens
The US dollar retreated to its lowest level in a week. The dollar index, which measures the greenback's strength against a basket of six currencies, slid 0.1 percent to 99.004. This is its lowest level since January 14.
Against the yen, the dollar was flat at 158.175 yen. Against the Chinese yuan trading offshore in Hong Kong, the dollar held steady at 6.9536 yuan. The euro was flat at $1.1640. The British pound was also steady at $1.3427.
Market participants are bracing for a day of cautious trading. All eyes remain on global developments and corporate earnings for further direction.
