Global markets' slide may impact Indian stock markets today

The Indian stock market is set for a lower opening today, following a day of losses across global markets. The Gift Nifty closed at 25,054 on Tuesday night and has dipped to 25,032 this morning, signalling significant losses for Indian investors at the start of trading.

In Europe, markets experienced a downturn on Tuesday, primarily influenced by Dutch microchip maker ASML, which saw its shares plummet over 15% after reporting a third-quarter loss. Other technology stocks followed suit, while Swedish telecom firm Ericsson surprised investors with better-than-expected results, leading to a 10.8% rise in its shares. Looking ahead, the European Central Bank is expected to announce its monetary policy review tomorrow, with analysts anticipating a third interest rate cut this year, potentially lowering rates to 3% by December.

In the US, markets closed higher yesterday but ended with substantial losses, particularly in the tech sector. ASML's poor performance affected other chipmakers, with Nvidia and AMD falling by 4.7% and 5.2%, respectively. The Dow Jones Industrial Average closed down 324.80 points (0.75%) at 42,740.42, the S&P 500 lost 44.59 points (0.76%) to finish at 5,815.26, and the Nasdaq fell by 187.10 points (1.01%) to close at 18,315.59. US futures are mixed this morning, with the Dow down 0.02%, while the S&P and Nasdaq are slightly up by 0.04% and 0.09%, respectively.

Asian markets also opened lower, with the Japanese market down 2% as investors await news of a new stimulus package for China's housing sector, which initially saw a 1% decline.

Indian markets 

The Indian market opened with small gains on Tuesday but ultimately closed lower, dragged down by declines in the metals, auto, IT, and pharmaceutical sectors, as well as significant players like Reliance, Bajaj Finance, and HDFC Life. Reliance shares fell more than 2%, raising concerns about declining profitability in its petrochemical business and stagnant retail growth. Analysts suggest that without new profitable ventures, Reliance’s stock could continue to slide in the coming quarters.

While the realty index rose 2.05% yesterday, it was insufficient to lift the overall market sentiment. Wipro ended the day down 3% despite expectations of a bonus issue. Conversely, Federal Bank shares peaked at ₹199.81 before closing with a modest gain at ₹198.50, buoyed by a buy recommendation from Motilal Oswal, which set a target price of ₹230.

Shares of Angel One Broking surged by 20% as profits and margins improved significantly, reflecting a growing client base. Cochin Shipyard's stock closed up 3%, with upcoming sales of its shares generating investor interest. Meanwhile, Network 18 saw a 10% increase as it seeks to acquire Dharma Productions.

However, BSE shares faced a downgrade from Jefferies, which predicts a 27% decline in price. The smallcap index rose 1.11%, while the midcap index gained only 0.21%. 

On Tuesday, foreign investors recorded a net sale of ₹1,748.71 crore in the cash market, while domestic funds made net purchases totalling ₹1,654.96 crore. The market breadth was nearly even, with 1,383 shares advancing and 1,389 declining on the NSE, and 1,986 rising versus 1,983 falling on the BSE.

At yesterday's close, the Sensex was down 152.93 points (0.19%) at 81,820.12, while the Nifty finished at 25,057.35, down 70.60 points (0.28%). The Bank Nifty managed a slight increase of 89.10 points (0.17%) to close at 51,906.00. The midcap index rose by 0.2% to 59,593.25, while the smallcap index climbed 1.11% to 19,302.05.

As the bulls lose strength, the only silver lining is that the Nifty remains above the 25,000 mark. Today's support for the Nifty is at 25,015 and 24,965, with resistance levels at 25,170 and 25,220.

Gold prices fluctuate

In commodities, gold prices increased by $13.20, closing at $2,662.90 per ounce, though it fell to $2,662 this morning. Gold prices in Kerala dipped by ₹200 to ₹56,760 yesterday, while silver rose to $31.42 an ounce. The dollar remains strong, with the dollar index closing slightly lower at 103.26, dipping to 103.24 this morning.

The Indian rupee appreciated slightly yesterday, closing down by two paise at ₹84.04, although it is expected to face pressure again today. Crude oil prices fell slightly, with Brent crude closing at $74.65 and slipping to $74.57 this morning. WTI crude stood at $70.94, while UAE's Murban crude was at $74.15 per dollar.

Cryptocurrencies also saw a rise, with Bitcoin climbing above $67,000 and Ether slightly up to $2,605. Industrial metals faced a downturn on Tuesday, with copper falling by 1.31% to $9,401.40 per tonne, and other metals like aluminium, lead, nickel, tin, and zinc also experiencing losses.

Market indicators 

- Sensex: 81,820.12 (-0.19%)
- Nifty: 25,057.35 (-0.28%)  
- Bank Nifty: 51,906.90 (+0.17%)  
- Mid Cap 100: 59,593.25 (+0.21%)
- Small Cap 100: 19,302.05 (+1.11%)
- Dow Jones: 42,740.40 (-0.75%)  
- S&P 500: 5,815.26 (-0.76%)
- Nasdaq: 18,315.60 (-1.01%)  
- Dollar ($): ₹84.04 (-₹0.02)  
- Dollar Index: 103.26 (-0.04)  
- Gold (oz): $2,662.90 (+$13.20)  
- Gold (Pavan): ₹56,760 (-₹200)  
- Crude (Brent): $74.25 (-$1.09)