The Indian stock market is expected to open on a negative note on Wednesday, mirroring the trend in global equities. A slew of overnight developments, including a weak Gift Nifty, Tesla’s Q2 results, and a contraction in Japan’s PMI, have cast a shadow over investor sentiment.
Gift Nifty Indicates Negative Opening
The Gift Nifty, a derivative traded on the Singapore Exchange, is trading at a discount to the Nifty futures, suggesting a bearish start for domestic indices. This negative bias is in line with the overall subdued mood in global markets.
Tesla’s Q2 Results Weigh on Sentiment
Electric vehicle giant Tesla’s Q2 results, released after market hours on Tuesday, triggered a sharp decline in its share price. While the company reported record revenue, concerns over margins and competition impacted investor confidence.This negative sentiment is likely to spill over into broader markets.
Japan PMI Contraction Adds to Worries
The preliminary manufacturing Purchasing Managers’ Index (PMI) for Japan contracted in July, indicating a slowdown in the country’s manufacturing sector. This data point has raised concerns about global economic growth, further dampening market sentiment.
Other Global Indicators
US stock markets ended marginally lower on Tuesday, with investors digesting earnings reports from Alphabet and Tesla.Oil prices remained relatively stable, while the US dollar strengthened against major currencies.Disclaimer: This news article is for informational purposes only and does not constitute financial advice. Investors are advised to consult with financial advisors before making any investment decisions.
Discover more from CIJ TODAY
Subscribe to get the latest posts sent to your email.