Key Market Cues Likely To Guide D-Street Sentiment Today

Domestic equities ended last week on a firm note, as technology and pharmaceutical stocks led most of the gains. The reopening of the US government improved overall global sentiment, stronger domestic corporate earnings, and the result of a key state election added to the positive sentiment.

As trading resumes on November 17, a mix of global developments and domestic cues is expected to guide investor sentiment on D-Street. Here’s what to watch.

US-China Trade Deal

The US expects to finalise its rare earths agreement with China by Thanksgiving, US Treasury Secretary Scott Bessent said on November 16, indicating progress in talks launched after the Trump-Xi meeting in South Korea last month. The preliminary deal, reached in late October, would pause China’s export curbs on critical minerals for one year. “We haven't even finished the agreement, which we hope to have done by Thanksgiving,” Bessent said on Fox News. He added, “I am confident… that China will honor their agreements.”

Russia Sanctions

Trump said he is open to supporting a Republican bill that would impose sanctions on countries continuing to do business with Russia. He told local reporters on November 16 that his party plans to introduce legislation aimed at tightening pressure on Moscow’s trading partners.

This could have implications for countries like India and China, which Trump has earlier described as “primary funders” of Russia’s war due to their ongoing energy and commodity trade with Moscow.

Sugar Stocks In Focus

Sugar stocks such as Balrampur Chini Mills, EID Parry, Dalmia Bharat, and Shree Renuka Sugars are likely to be in focus after the government allowed 1.5 million tonnes of sugar exports for the new season. The decision, supported by a larger domestic surplus due to lower ethanol diversion, is expected to help trim inventories and support local prices.

US Stock Market

Overnight, the key benchmark indices on the Wall Street ended on a mixed note as concerns grew that the Federal Reserve may delay its anticipated December rate cut after Fed Chair Jerome Powell warned that another reduction was “not certain”. The Dow Jones fell 0.65 per cent, while the S&P 500 slipped 0.05 per cent. The tech-heavy Nasdaq Composite managed to gain 0.13 per cent.

Asian Stock Markets

Asian markets started the week on a weak note as investors turned cautious amid fading expectations of a US rate cut and rising concerns over stretched tech valuations.

In early session, Japan's Nikkei 225 traded nearly 0.50 per cent lower, while South Korea's Kospi traded higher by 1.35 per cent. China's CSI 100 was down 0.77 per cent and the Hong Kong-based Hang Seng quoted more than 0.80 per cent lower.

Crude Oil Prices

Crude oil prices fell in early trade today after signs that operations had resumed at Novorossiysk, a major Russian port on the Black Sea. Operations had been suspended last week following some damage from a Ukrainian attack.

Brent Crude Oil futures traded 0.95 per cent lower at $63.79 per barrel, and West Texas Intermediate (WTI) Crude Oil futures, too, traded lower at $59.36, down 0.98 per cent.