Share Market Today

Tuesday’s opening of the local stock benchmark indices, Sensex and Nifty 50, is anticipated to be lower due to a sell-off in international markets. Asian markets saw negative trading, while overnight the US stock market had a strong decline due to selling in technology firms and speculators reducing their bets on an interest rate cut by the US Federal Reserve.

After the positive US jobs report on Friday, traders significantly reduced their expectations for another massive rate cut by the US Federal Reserve. According to the CME’s FedWatch tool, they were pricing in an 86% chance of a 25 basis point decrease and a roughly 14% chance that the central bank would not lower rates at all. For the sixth straight day, the Indian stock market indices finished substantially lower on Monday due to persistent withdrawals of foreign investment.

The Nifty 50 closed 218.85 points, or 0.87%, lower at 24,795.75, while the Sensex fell 638.45 points, or 0.78%, to close at 81,050.00. “Overall sentiments have been negatively impacted by the outflow of ₹30,700 crore by foreign institutional investors in just three days in October, in addition to rising crude oil prices.” We anticipate that unless FII selling slows down, the market will continue to be pressured.

The conclusion of the RBI policy and the start of the Q2 FY25 earnings season will be this week’s main topics of interest, according to Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Major global market cues for the Sensex for the Indian Share Market Today:

Markets in Asia

The majority of Asian markets saw lower trading, mirroring Wall Street’s overnight losses. The largest MSCI Asia-Pacific stock index outside of Japan experienced a 0.05% decline.

The Topix plummeted 0.88% and the Nikkei 225 of Japan fell 0.75%. The Kosdaq fell 0.14% and the Kospi fell 0.61% in South Korea. Chinese markets opened more than 10% higher following their extended holiday. The Hang Seng index in Hong Kong fell more than 3%, but the CSI 300 index increased 10.2%.

Give Nifty Something Now

The Gift Nifty was trading at 24,860, which was almost 130 points below the previous closing of the Nifty futures. This suggests that the Indian stock market indicators are off to a poor start. A sell-off in technology firms contributed to Monday’s lower closing price for the US stock market on Wall Street.

The Dow Jones Industrial Average sank 398.51 points, or 0.94%, to 41,954.24, and the S&P 500 declined 55.13 points, or 0.96%, to 5,695.94. At 17,923.90, the Nasdaq Composite closed 1.18%, or 213.94, lower.

Amazon’s share price decreased by 3%, Apple’s stock fell by 2.3%, and Alphabet’s stock plummeted by 2.5%. Generac Holdings shares gained 8.52%, Pfizer stock price rose 2% and Air Products and Chemicals stock jumped 9.5%.

Treasury Returns

For the first time in over two months, the benchmark US Treasury 10-year yield exceeded 4% as investors withdrew their bets on yet another massive rate decrease by the Federal Reserve.

The 10-year yield reached its highest level since late July of 4.033% and increased 3.9 basis points (bps) to 4.019%, marking the fourth straight session of gains, according to Reuters. The yield on the US two-year Treasury hit 4.0270%, the highest level since August 19, and it was last up at 3.9764%.

Samsung Q3 Results

Samsung Electronics reported a 274% increase in operating profit for the third quarter, although this figure fell short of analysts’ projections. For the three months ended September 30, the company recorded a preliminary operational profit of about 9.1 trillion won ($6.8 billion), which was lower than the 10.3 trillion won LSEG SmartEstimate.

This would be in contrast to 2.43 trillion won during the same time last year and 10.44 trillion won the quarter before. 81.57 trillion won was expected in revenue, however, only 79 trillion won was received.

Japan Actual Wages

After two months of rises over the summer bonus season, Japan’s inflation-adjusted salaries dipped in August, and data also revealed a decline in consumer expenditure. In August of this year, real wages in Japan decreased by 0.6% from the same month last year. That followed a revised July increase of 0.3%.

According to unrelated statistics, household expenditure fell 1.9% in August compared to the same month last year, which was lower than the market consensus of a 2.6% decline based on a Reuters poll. However, when seasonally adjusted, spending increased by 2.0% from the previous month, which was the strongest rate of growth in a year.

Oil Costs

Following a price rally to the greatest level in more than a month, crude oil prices plummeted due to profit booking. US West Texas Intermediate futures down 0.3% to $76.94 a barrel, while Brent crude futures fell 0.3% to $80.70 per barrel. On Monday, both contracts saw gains of more than 3%, reaching their highest points since late August.

Current Gold Rate

Tuesday’s gold price was unchanged while investors awaited the US Federal Reserve’s most recent meeting’s minutes. US gold futures dropped 0.1% to $2,662.90, while spot gold remained relatively stable at $2,643.68 per ounce.