Key Market Cues Likely To Impact D-Street Action Today

Domestic equities closed the previous session on a negative note. The Sensex closed 849.37 points, or 1.04 per cent lower at 80,786.54, and the Nifty 50 slipped 255.70 points, or 1.02 per cent to settle at 24,712.05.

The broader markets also mirrored the benchmarks and witnessed massive selling. The Nifty Midcap 100 and the Nifty Smallcap 100 had ended lower by 1.62 per cent and 2.03 per cent, respectively.

The market will be opening today, August 28, after observing a trading holiday on the occasion of Ganesh Chaturthi. A host of market cues are likely to influence the action on the Dalal Street today. Let’s take a look at these.

Trump Tariffs

Domestic equities are set to react to US President Donald Trump’s additional 25 per cent ‘punitive’ tariff on Indian imports, which came into effect on August 27. This is in addition to the initial 25 per cent tariff that came into effect on August 7, taking the total tariff burden on Indian exports to the US to 50 per cent.

US Fed Rate Cut Anticipation

According to a Reuters report, New York Fed President John Williams said on August 27 that interest rates could come down eventually, but any decision on a rate cut at the upcoming September 16-17 meeting will depend on incoming economic data.

Though, investors have largely discounted the rate cut after Fed Chair Jerome Powell signalled last week about changing their policy stance.

US Markets

Overnight , in the US, all three major benchmark indices ended higher.

The Dow Jones Industrial Average rose 0.32 per cent, the S&P 500 added 0.24 per cent, and the Nasdaq Composite gained 0.21 per cent.

Asian Markets

Asian Markets traded higher in early session today,

Japan's Nikkei 225 was up by 0.56 per cent, China's CSI 300 was up by around 0.7 per cent, and South Korea's Kospi was trading higher by 0.50 per cent.

However, the Hong Kong-based Hang Seng traded lower by 0.66 per cent.

Crude Oil Prices

Crude oil prices traded lower after rising more than 1 per cent in the previous session. At the time of writing this report, Brent Crude futures traded 0.34 per cent down at $66.98 per barrel. The WTI Crude futures traded 0.78 per cent lower at $63.65 per barrel.

Gold Prices Today

Gold price on the Multi Commodity Exchange (MCX) traded lower by 0.16 per cent at 1,01,379 per 10 grams. In the international market, Comex Gold traded flat with a slight negative bias, 0.04 per cent, at $3,447.3 an ounce.

US Bond Yields

The benchmark US 10-year Treasury yield slipped 0.12 per cent to 4.23 per cent in early trade today, extending decline for the third consecutive day, as expectations of a potential rate cut solidified.