Indian Stock Market Update: Global Cues, Gift Nifty, CPI Inflation, and Tesla Price Impact Today - Read Now

The Indian stock market is expected to fall today with quite mixed cues coming in from abroad. Those trading the country's equity benchmark indices- Sensex and Nifty 50-will witness a weak opening day considering indications coming from significant global markets and because the country waits eagerly for significant economic reports in the US. Given below are all the factors that are plummeting the Indian market and all the other economic indicators that traders will keep an eye on.

1. Gift Nifty Indicates Negative Opening
The largest indicator of the opening sentiment of the Indian market, Gift Nifty traded around 23,890 at a discount of approximately 70 points from the previous close. The discount means Nifty as well as Sensex may have a weak opening, showing cautiousness among investors and doubts over global market trends.

2. Sensex and Nifty 50 Witness a Weak Spell
The last couple of sessions have seen both the Sensex and Nifty under pressure, and the former has shed more than a percent today. The Sensex lost 820.97 points to close at 78,675.18, down 1.03%, while Nifty 50 lost by 257.85 points to close at 23,883.45 down 1.07%. Asian and European weak cues and other reasons, such as domestic earnings disappointment, have led to correction on 4th successive day, with high valuations and rising bond yields being added investor pessimism says Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

3. Asian Markets Reflect Weakness
Asian markets have been weak, tracking overnight losses from Wall Street. In Tokyo, the Nikkei 225 shed 0.5%, the Topix slid 0.3%, and in Seoul, the Kospi and Kosdaq fell 1.1% and 1.4%. Hong Kong's Hang Seng index futures showed a negative bias. All these instances of Asian markets showing a decline indicate that investor psyche worldwide is still very cautious, hence would very likely impact the Indian market's performance as well.

4. Wall Street Drops as Profit-locked and Awaits Inflation Data
Wall Street closed the day in the red on Tuesday as profit taking and caution ahead of key US inflation data weighed on it. The Dow Jones Industrial Average slid 382.15 points or 0.86 percent to 43,910.98, while the S&P 500 fell 17.36 points or 0.29 percent to 5,983.99. The Nasdaq Composite lost 17.36 points or 0.09 percent at 19,281.40. Individual stocks put Tesla down 6%, Trump Media & Technology Group down 8.8%, and Nvidia, Amazon, and Microsoft up modestly.

5. US Federal Reserve Officials Indicate Muted Economic Constrictions
Minneapolis Federal Reserve Bank President Neel Kashkari noted US monetary policy is only "modestly restrictive," and its goal is to slow inflation and slightly slow the economy. Richmond Fed President Thomas Barkin said the central bank is ready to reverse course if inflationary forces accelerate or the job market clouds over. This underscores the Fed's hawkish stance when it doesn't know whether growth is strengthening or inflation is firming.

6. India's Retail Inflation and Industrial Production Rise
India's retail inflation accelerated to a 14-month high in October, breaching the Reserve Bank of India's tolerance range. The yearly change in consumer price index rose to 6.21% in October from 5.49% in September. Simultaneously, India's Index of Industrial Production surged by 3.1% in September after contracting by 0.1% in August. The inflation spurt is likely to unsettle the RBI and shape market sentiment in the days ahead.

7. Gold Prices, Dollar Index Unchanged
U.S. inflation data will shed further light on what the Federal Reserve is doing, so it is worth watching, and investors stay put on Tuesday as gold prices are steady. Spot gold was steady at $2,599.19 an ounce, while its U.S. counterpart remained unchanged at $2,605.10. The dollar strengthened to a six-and-a-half-month high against major world currencies, with the dollar index increasing 0.51% to 105.96. The strong dollar can have effects on commodities, including oil and gold, and to influence foreign exchange flows in emerging markets like India.

8. Oil Prices Near Monthly Lows
Crude oil prices have remained trading near their lowest levels this month. Brent crude was off fractionally 0.01% at $71.88 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 0.07% to $68.07 per barrel. The weakening oil prices are beneficial for India, the largest oil importer of the world, as it brings down import bill and trade deficit; however weak oil prices may also be negative as it may show slowing pace of the world economy, which might hurt the overall market sentiment in an event.