Indian Stock Market Poised for a Positive Opening: Key Global and Domestic Cues

Sensex and Nifty expected to rise amid positive global trends, Gift Nifty premium, and easing US inflation data.

January 15, 2025: The Indian stock market is set for a positive opening on Wednesday, buoyed by favourable cues from global markets. After four consecutive days of decline, both the Sensex and Nifty indices ended higher on Tuesday, signaling short-term relief for investors.

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The Sensex gained 169.62 points (0.22%) to close at 76,499.63, while the Nifty 50 rose 90.10 points (0.39%) to end at 23,176.05. Analysts, however, remain cautious, citing factors like weak global sentiment, rupee depreciation, low earnings growth, and foreign institutional investor (FII) outflows.

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Key Global Market Cues:

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• Asian Markets:
  Asian indices showed optimism, with Japan's Nikkei 225 up 0.75% and South Korea's Kospi rallying 0.95%. However, Hong Kong’s Hang Seng futures indicated a slight dip.
• Gift Nifty:
  Gift Nifty traded at 23,305, reflecting a 33-point premium over the Nifty futures’ previous close, hinting at a promising start for Indian indices.
• Wall Street:
  The US markets ended mixed after softer-than-expected wholesale inflation data. The Dow Jones climbed 221.16 points (0.52%), while the S&P 500 rose 6.69 points (0.11%). In contrast, the Nasdaq slipped 43.71 points (0.23%).
• US Producer Prices:
  The Producer Price Index (PPI) for December rose 0.2%, slightly below the expected 0.3% increase, providing relief to markets.
• US Treasury Yields and Dollar:
  Treasury yields dipped, with the 10-year note easing from a 14-month high. The US dollar stabilized but stayed below recent peaks as traders awaited consumer inflation data.
• Crude Oil Prices:
  Oil prices inched higher, supported by US sanctions on Russian flows. Brent crude rose 0.15% to $80.04 per barrel, while WTI crude gained 0.23% to $77.68.
• Gold Prices:
  Gold remained subdued, trading at $2,672.93 per ounce in the spot market, as investors awaited the US inflation report.

Domestic Sentiment:

Experts believe the short-term relief in the Indian markets may face challenges from broader global uncertainties and domestic economic concerns. Siddhartha Khemka of Motilal Oswal Financial Services stated that weak global cues, a falling rupee, and FII outflows continue to weigh on market sentiment.

With the Sensex and Nifty likely to open higher, market participants are advised to remain vigilant as volatility persists in both global and domestic markets.

Tags:
Indian stock market, Sensex today, Nifty forecast, Gift Nifty, Asian markets, US producer prices, crude oil prices, gold prices, global market trends, FII outflows.