After the rise in global stock markets, the Indian stock market may open with a rise for the second consecutive day on Tuesday. Asian markets remained on the rise, while the US stock market remained on the rise overnight on hopes that the government shutdown would end soon. On Monday, amid buying in select major index stocks, the Indian stock market ended its three-day long decline and saw a rise in Sensex and Nifty. Sensex rose 319 points to 83,535, while Nifty 50 index rose 82 points to close at 25,574.
Siddharth Khemka, Research Head, Wealth Management, Motilal Oswal Financial Services Limited, said in a Mint report that we expect markets to remain range-bound as per global indicators, while better-than-expected corporate earnings and optimism over any progress in India-US trade talks could support the uptrend. Let us also tell you what are those 7 reasons due to which a tsunami of money can come in the stock market.
Asian market boom
Asian markets rose on Tuesday after overnight gains on Wall Street. Japan’s Nikkei 225 gained 1.06 percent, while the Topix index rose 0.52 percent. South Korea’s Kospi index rose by 2.72 percent and Kosdaq by 1.38 percent. A slight decline was seen in Hong Kong’s Hang Seng Index futures.
increase in gift nifty
GIFT Nifty was trading around 25,709 levels, which is a premium of about 15 points over the previous closing price of Nifty futures, indicating a flat to positive start for the Indian stock market indices.
Wall Street is buzzing
The US stock market rose sharply on Monday due to big gains in AI-related stocks after progress in ending the record government shutdown. The Dow Jones Industrial Average rose 0.81 percent to 47,368.63, while the S&P 500 rose 1.54 percent to 6,832.43. The Nasdaq closed 2.27 percent higher at 23,527.17, its biggest one-day percentage gain since May 27.
Share price of Nvidia increased by 5.8 percent, Palantir shares increased by 8.8 percent, AMD shares increased by 4.47 percent, Amazon shares increased by 1.63 percent and Microsoft shares increased by 1.85 percent. Tesla’s share price fell by 3.7 percent, United Airlines’ shares fell by 1.3 percent and American Airlines’ shares fell by 2.5 percent. Metsera’s shares fell by 14.8 percent and Eli Lilly’s shares fell by 4.6 percent.
India-US trade deal
According to Bloomberg report, US President Donald Trump said that he will reduce the tariff rate on Indian goods at some point. He said the US is getting “very close” to a trade deal with New Delhi. Trump said that we are making a fair agreement. He predicted that the two countries “are very close to an agreement that is good for everyone. The impact of which can be seen in the country’s stock market.”
US Fed Governor raised hopes
US Federal Reserve Governor Stephen Miron said that better-than-expected inflation data and signs of continued weakness in the job market point to a third consecutive cut in interest rates in December. Miran said in an interview with CNBC that next month we may see a cut of 50 basis points in interest rates. He further said that “at a minimum,” the central bank should reduce rates by another quarter percent.
Fall in crude oil prices
A decline was recorded in the prices of crude oil. Brent crude oil fell 0.19 per cent to $63.94 per barrel, while US West Texas Intermediate (WTI) crude futures fell 0.23 per cent to $60.01. Which can prove to be a profitable deal for both the stock market and currency market in the country.
gold prices
Gold prices rose to a nearly three-week high in December on rising expectations of another interest rate cut by the Fed, boosting demand for the safe-haven asset. Spot gold prices rose 0.4 percent to $4,131.83 an ounce, the highest level since October 24. US gold futures for December delivery rose 0.4 per cent to $4,138.70 an ounce.