Global cues point to mixed market outlook as Indian indices set for weak open
Indian equities are expected to open lower on Tuesday, while foreign investors sold stocks and domestic institutions continued buying, amid mixed movements in Asian and US markets.
Indian benchmark indices are projected to open on a weak note on Tuesday, with the GIFT Nifty trading around 22,663.50, down about 110 points in early trade. The domestic market had ended the previous session higher, as the Nifty closed above 22,700 and the Sensex rose 0.66 percent to 73,606.75, driven by gains in pharma, metal and oil-&-gas stocks. The broader market outperformed, with the Nifty Midcap and Smallcap indexes gaining 1.2 percent and 1.4 percent respectively.
Across the globe, Asian indices were higher in early trade, led by South Korea’s Kospi, which rose 1 percent, and Japanese stocks, which advanced on tech-sector optimism after Anthropic’s US IPO filing. In the United States, the Dow Jones Industrial Average increased 0.28 percent to 52,361.58, the S&P 500 rose 0.70 percent to 7,676.77, and the Nasdaq Composite gained 0.83 percent to 26,169.38, helped by AI-related sentiment following Anthropic’s filing.
The US dollar index was up at 102, while 10-year Treasury yields edged to 4.99 percent and 2-year yields to 4.71 percent. Asian currencies showed mixed performance against the dollar, with the Indonesian rupiah and Japanese yen slipping, while the Taiwan dollar and Chinese renminbi posted modest gains.
Oil prices fell modestly, with Brent crude down 0.57 percent to $115.15 a barrel and US West Texas Intermediate slipping 0.43 percent to $101.32, as easing concerns over the US-Israeli conflict reduced supply-risk premiums. Gold remained near $4,000 an ounce ahead of the Federal Reserve’s upcoming rate decision.
On the fund-flow front, foreign institutional investors were net sellers on October 26, disposing of equities worth Rs 1,462 crore, whereas domestic institutional investors extended their buying streak for a tenth straight session, acquiring Rs 2,609 crore of shares.