Indian equity benchmarks are set for a cautious start to Tuesday’s session as weak global cues and lingering uncertainty around key US economic data keep risk appetite in check. With few domestic triggers, market participants are likely to take their cues from global markets and developments on the macro front.
Early indicators point to a soft opening. At around 7.45 am, the GIFT Nifty was trading near 26,033, down about 60 points or 0.2 percent, suggesting that the Nifty 50 could open in the red.
Overnight, Wall Street ended marginally lower as investors positioned themselves ahead of a packed economic calendar later this week. Market participants also continued to assess reports around potential Federal Reserve candidates and recent comments from policymakers for clues on the future path of interest rates.
After the Fed’s latest rate cut, attention has now shifted to the delayed November US jobs report, due on Tuesday, which is expected to point to a slowing labour market. The data will also include estimates for October payrolls that were postponed due to the federal shutdown. The US consumer price index, scheduled for Thursday, will be another key data point for markets.
Overnight, the Dow Jones Industrial Average slipped 0.09 percent, the S&P 500 fell 0.16 percent, while the Nasdaq Composite declined 0.59 percent.
Asian markets opened mixed to mildly lower, with investors paring back risk ahead of the US data releases. Japanese equities edged down, while Australian markets saw modest gains. US stock index futures for the S&P 500 and Nasdaq 100 were also trading lower in early Asian hours, extending the cautious tone.
On the domestic front, attention is turning to regulatory developments. The board of the Securities and Exchange Board of India is scheduled to meet on Wednesday, where it is expected to deliberate on several market related proposals. According to sources, the agenda may include a review of mutual fund regulations, stockbroker norms and the ICDR framework, aimed at easing compliance and encouraging greater retail participation.
In the primary market, the ICICI Prudential AMC IPO enters its final day of subscription today. The issue is being closely watched given the company’s wide product offering, with 143 schemes across equity, debt, hybrid, passive and thematic categories.
In global currency markets, the US dollar slipped to near a two month low during early Asian trade as investors awaited the release of key economic data, including the delayed jobs report.
Cryptocurrencies also remained under pressure. Bitcoin slipped below the $86,000 mark for the first time in two weeks, as sentiment weakened further. Analysts noted that any rebound in prices is being met with selling from investors who bought near the all time highs seen in early October.
In the previous session, foreign institutional investors were net sellers of Indian equities worth Rs 1,468 crore, while domestic institutional investors provided support with net purchases of Rs 1,792 crore, exchange data showed.
From a technical perspective, the index continues to move within a consolidation range. The broader trading band is seen between 26,220 on the upside and 25,700 on the downside. The formation of lower highs keeps 26,200 as a key level to watch for any meaningful change in trend.
Options data also highlights this zone as a hurdle. Around 1.55 crore call contracts at the 26,200 strike point to strong resistance, while nearly 1.89 crore put contracts at the 25,900 strike suggest a solid support base, according to SAMCO Securities.
