Indian stocks could trigger a fall on frayed global cues

(RTTNews) – GIFT Nifty futures and global benchmarks edge lower amid uncertainty over Federal Reserve rate cut prospects after upbeat non-farm payrolls records and a poor start for Indian stocks on Monday.

Files showing India’s industrial production expanded at the fastest pace in six months in November are likely to ease sentiment and limit the plan for a pullback.

Investors are most likely to tread cautiously earlier than an individual in India traces the record inflation resulting from today’s buying and selling hours. India’s annual rate of inflation eased to 5.48% in November 2024 from 6.21% in the outdated month, remaining within 4% of the central bank’s limit of 2%. Higher crude oil prices may also be a buffer.

Files from the Ministry of Statistics and Program Implementation showed that India’s industrial production rose 5.2% on a 365-day basis in November, faster than 3.7% in October. The expected increase was 4%.

Manufacturing output rose 5.8% year-on-year, up from a 4.4% rise in October. Similarly, growth in mining accelerated to 1.9% from 0.9%, while power generation rose 4.4% over the past 365 days, compared with 2% in October.

The market will react to a flurry of quarterly earnings stories. HCL Applied Sciences, Den Networks, Angel One and Delta Corp are among the corporations scheduled to announce their quarterly earnings today.

Indian stocks ended sharply lower on Friday to extend their slide for a third straight day, on concerns over a weakening rupee, rising oil prices and continued FII outflows amid global uncertainties.

TCS’s confident outlook triggered some strong buying in IT stocks, which helped limit overall losses in the broader market.

The benchmark S&P/BSE Sensex fell 241.30 pa, or 0.31%, to 77,378.91, while the broader NSE Nifty fell 95 pa, or 0.4%, to 23,431.50.

U.S. stocks fell on Friday, the capacity for strong advertising across the board, as buoyant nonfarm payroll records fueled concerns that the Federal Reserve is likely to withhold passion charges in the most popular stages or gradually reduce the pace of cuts. Rising bond yields are also vulnerable.

The major averages all closed sharply lower. The Dow settled down 696.75 maps, or 1.63%, at 41,938.55. The S&P 500 fell 91.21 points, or 1.54%, to 5,827.04, while the Nasdaq ended down 317.25 points, or 1.63%, at 19,161.62.

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