Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open flat on Monday, taking a breather from substantial rally in the previous month, tracking mixed cues from global peers.

Asian markets traded mixed, while the US stock market ended lower last week after data showed US inflation remained flat in May, in-line with estimates.

After the release of the US personal consumption expenditures price (PCE) index, the bets for an interest rate cut by the US Federal Reserve in September rose to 66%, LSEG FedWatch data showed.

On Friday, the Indian stock market benchmark indices snapped their four-day winning streak to end lower amid profit booking at record high levels.

The Sensex dropped 210.45 points, or 0.27%, to close at 79,032.73, while the Nifty 50 settled 33.90 points, or 0.14%, higher at 24,010.60.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — July 1

“We expect the positive momentum to continue at a steady pace with stock-specific action. However, the release of economic data points next week would keep a little volatility in the market. Sector like Auto is expected to be in the limelight as OEMs would release their monthly auto sales numbers,” said Siddhartha Khemka, Senior Group VP, Head – Research, Broking & Distribution, Motilal Oswal Financial Services Ltd.

Investors will watch out for several factors that may influence the markets in the coming week, including any Union Budget-related or government policy announcements, domestic and global macroeconomic indicators, foreign fund inflows, crude oil prices, and other key global cues.

Read here: Weak Ahead: Fed speech, US & Indian manufacturing PMI data, global cues, among key market triggers next week

Here are key domestic and global market cues for Sensex today:

Gift Nifty Today

Gift Nifty was trading around 24,135 level, indicating a flat start for the Indian stock market indices.

Asian Markets

Asian markets traded mixed on Monday as investors assessed key economic data from China and Japan.

Japan’s Nikkei 225 gained 0.8% and the Topix rose 0.94%. South Korea’s Kospi fell 0.16%, while Kosdaq rallied 0.55%. Hong Kong markets are closed for a public holiday.

Also Read: Sensex recorded the sharpest monthly gain in June since December

Wall Street

US stock market ended lower on Friday as investors digested in-line inflation data and weighed political uncertainty after the US presidential debate, Reuters reported.

The Dow Jones Industrial Average declined 41.12 points, or 0.11%, to 39,122.94, while the S&P 500 dropped 22.57 points, or 0.41%, to 5,460.30. The Nasdaq Composite closed 126.08 points, or 0.71%, lower at 17,732.60.

Nike shares plummeted 19.98%, witnessing its steepest one-day fall in over two decades, after forecasting a surprise drop in fiscal 2025 revenue.

Infinera shares jumped 15.78% after Nokia said it would acquire the company in a $2.3 billion deal.

Also Read: Wall St Week Ahead-Jobs, inflation data may break the US Treasury market out of narrow range

US Inflation

US monthly inflation was unchanged in May as the personal consumption expenditures (PCE) price index last month remained flat following an unrevised 0.3% gain in April. In the 12 months through May, the PCE price index increased 2.6% after advancing 2.7% in April. Last month’s inflation readings were in line with economists’ expectations.

FPI Buying

Foreign portfolio investors (FPI) turned net buyers in June after two months of selling. In June, FPIs purchased Indian equities worth ₹26,565 crore. FPI inflows into Indian equities were relatively modest in the first half of 2024, amounting to ₹3,201 crore after a substantial inflow of over ₹17,000 crore in the previous year.

Read here: FPI inflows poised to surge after a modest H1 2024; June sees strong recovery

China released its official PMI figures on the weekend, with its manufacturing PMI coming in at 49.5, unchanged from May and marking its second straight month in contraction territory.

China PMI

China’s factory activity contracted for a second straight month in June. The official manufacturing purchasing manager index (PMI) came in at 49.5 last month, unchanged from May, the National Bureau of Statistics said.

Japan Business Sentiment

Confidence among large Japanese manufacturers improved in the second quarter to a two-month high. An index of sentiment among the country’s biggest manufacturers climbed to 13 in June from 11 in March, the BOJ’s quarterly Tankan survey showed. Economists polled by Reuters expected a +12 reading. Large non-manufacturers’ sentiment edged lower to 33 from 34.

(With inputs from Reuters)

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