Election Results 2024: The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday, the day of election results 2024 will be announced.
The counting of votes for the Lok Sabha Elections 2024 will begin soon with Prime Minister Narendra Modi projected to secure a third consecutive term. The Indian equity market hit a record high on Monday, with both the indices, Sensex and Nifty 50 surging more than 3% each after exit polls indicated the ruling BJP-led alliance may again win with a vast majority.
Asian markets traded lower, while the US stock market ended mixed overnight after weak US manufacturing data raised hopes of interest rate cut by the US Federal Reserve this year.
Traders now see a 59% chance that the Fed will begin cutting rates in September, up from about 53% before the ISM data was released, according to the CME’s FedWatch tool, Reuters reported.
On Monday, the Indian stock market witnessed its biggest single day rally since January 2021, amid buying across the board as investors cheered the exit poll results for Lok Sabha elections 2024, which predicted NDA to win for the third consecutive time.
The Sensex surged 2,507.47 points, or 3.39%, to close at 76,468.78, while the Nifty 50 settled 733.20 points, or 3.25%, higher at 23,263.90.
“We expect the market to reach new highs given the clear majority for the ruling party in exit polls, good macro trends, and solid corporate earnings. One can focus on manufacturing, capex, infrastructure and financials as themes for long term investment,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Tuesday following a mixed session on Wall Street overnight.
Japan’s Nikkei 225 fell 0.4%, while the Topix eased 0.14%. South Korea’s Kospi dropped 0.28% and the Kosdaq declined 0.09%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 23,560 level, a premium of nearly 150 points from the Nifty futures’ previous close, indicating a strong start for the Indian stock market indices.
Wall Street
The US stock market ended mixed in a choppy session on Monday amid soft manufacturing sector data and as a glitch on the NYSE.
The Dow Jones Industrial Average declined 115.29 points, or 0.30%, to 38,571.03, while the S&P 500 rose 5.89 points, or 0.11%, to 5,283.40. The Nasdaq Composite ended 93.66 points, or 0.56%, higher at 16,828.67.
Among stocks, Nvidia shares rallied 4.9%, while shares of other megacaps, including Apple, Amazon, Alphabet, and Meta ended higher. Microsoft and Tesla finished lower, Reuters reported. GameStop shares jumped 21%.
NYSE Glitch
The New York Stock Exchange witnessed a technical glitch that triggered massive swings in the shares of many companies, including the Warren Buffett-led Berkshire Hathaway. Trading in at least 60 NYSE-listed stocks were halted due to the volatility, before the bourse fixed the technical issue and activity resumed.
Read here: NYSE halts trading in selective stocks due to technical glitch
US PMI
The US Institute for Supply Management (ISM) said its purchasing managers index (PMI) for manufacturing fell to 48.7 in May, from 49.2 in April, sliding as well from an 18-month high of 50.3 seen in March.
US Treasury Yields
US Treasury Yields declined after weak manufacturing data bolstered bets of Fed rate cut this year. The benchmark US 10-year note yields fell to a two-week low, down 11 basis points to 4.39%.
Also Read: European Stocks Advance After Weekly Drop as Focus Turns to ECB
Dollar
The US dollar fell to a three-week low after soft PMI data. The dollar index, a measure of the US currency’s value versus six major currencies, was down 0.3% to 104.24. The index earlier dropped to a three-week low of 104.22.
Oil Prices
Crude oil prices held losses near four months low on OPEC’s plan to return barrels to the market. Brent futures fell 0.31% to $78.12 a barrel, while the West Texas Intermediate (WTI) crude declined 0.28% to $74.01.
(With inputs from Reuters)
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