Summary of this article
Indian markets expect a positive start as Gift Nifty rose 100 points, tracking strong global cues.
Investor sentiment remains sensitive to the US-Venezuela conflict and potential safe-haven shifts into gold and silver.
Easing crude oil prices and robust domestic institutional buying provide a cushion against marginal foreign institutional investor selling pressure.
Stock Market Cues: On January 6, the headline indices are likely to start the session on a positive note. The Gift Nifty opened higher at 26,419 up by nearly 100 points, the benchmark Nifty is expected to track the gains.
On January 5, the headline indices finished lower. The BSE Sensex finished the session with a decline of 322.39 points or 0.38 per cent around the 85,439.62 level. On the other hand, the Nifty 50 touched fresh highs but retreated to close lower by 78.25 points or 0.30 per cent at 26,250.30.
Stock Market Cues For Today
On January 6, the US-Venezuela conflict, changes in gold and silver prices, crude oil prices, and foreign institutional investor (FII) flows are set to impact investor sentiment on D-street:
US-Venezuela Conflict
Venezuelan President Nicolás Maduro and his wife, Cilia Flores, appeared before a Manhattan federal court on January 5. The duo pleaded not guilty to charges of narcoterrorism. Maduro’s next hearing is scheduled for March 17. On the other hand the UN Security Council held an emergency session to discuss the legality of "Operation Absolute Resolve." Russia and China have officially called for Maduro's release. Meanwhile Delcy Rodríguez has been sworn in as acting president in Venezuela. Amid the conflict, D-Street may see a slight risk-off sentiment with investors seeking safe-haven assets amid mounting trade uncertainty. Conversely several sector specific stocks are also likely to be in focus today these include stocks of paint and tire makers and upstream oil companies.
Crude Oil Prices Today
On January 6, crude oil prices traded marginally lower as the price of West Texas Intermediate was around $57.99 down by $0.33 or 0.57 per cent. The price of Brent Crude was around $61.47 down by $0.29 or 0.45 per cent in the early hours of the day.
Gold Prices On January 6
Physical gold prices edged upwards in the early hours of January 6 as the price of 24 karat gold was Rs 13,823 per gram, the price of 22 karat purity gold was around Rs 12,671 per gram and the price of 18 karat gold was around Rs 10,368 per gram.
Silver Price Edges Up
Spot silver prices edged upwards on January 6, with physical silver prices trading higher at Rs 2,48,100 per kilogram up by Rs 100.
FII Inflows
FIIs turned net sellers of Indian equities on January 5 selling Indian equities worth Rs 36.25 crore. On the other hand, Domestic Institutional Investors continued to remain net buyers purchasing Indian equities worth Rs 1,764.07 crore.
Asian Indices Trade Mixed
On January 6, all major Asian indices traded higher in the early hours of the session. The Nikkei 225 and the Hang Seng traded with gains of 0.71 per cent and 1.86 per cent respectively. On the other hand, the KOSPI and the Shanghai Composite traded higher by 0.02 per cent and 1.09 per cent respectively.
US Markets
US market indices closed the session with gains on January 5. The Nasdaq Composite closed with gains of 0.69 per cent. On the other hand, the S&P 500 and the Dow Jones Industrial Average (DJIA) closed higher by 0.64 per cent and 1.23 per cent respectively.
