The Indian headline indices- Sensex and Nifty are likely to open higher on Tuesday after the exit polls results indicated landslide victory for the ruling Bhartiya Janata Party in 2019 elections. The vote counting is scheduled on May 23, which will decide the fate of the political party. The SGX Nifty ended higher by 11 points at 11,876 level. Yesterday the Indian stock markets hit their record high. While the Sensex ended higher by more than 1400 points at 39,352.67 level, Nifty settled at 11,828.25 level, up 400 points or 3.69 percent from their previous settlement. We take a close look at key things which will drive the market today:
Crude oil prices: The crude oil prices soared on Tuesday on reports that producer club OPEC will continue restraining supply this year. Geopolitical tensions between the United States and Iran also led to the rise in oil prices. The international benchmark for oil prices, Brent crude futures, were last seen at $72.07 per barrel, up 10 cents, or 0.1 percent, from their previous close, while the US West Texas Intermediate (WTI) crude futures were higher by 14 cents, or 0.2 percent, at $63.24 per barrel from their previous settlement.
Rupee movement: The Indian rupee closed at 69.74, up 0.69 percent against the US dollar from its previous close of 70.22 on Monday. “Spot INR is likely to trade in a range between 69.50-69.90 as the gains from a rally in stock markets is likely to be offset by rise in global crude oil prices,” Amit Sajeja, Associate Vice President with Motilal Oswal told Financial Express Online.
FIIs and DIIs: The foreign institutional investors (FIIs) bought shares worth Rs 1,734 crore on a net basis on Monday after the exit polls hinted toward’s BJP’s win with a thumping majority, while domestic institutional investors (DIIs) sold shares worth Rs 543 crore on the same day.
US-China trade war: After the economic giant US imposed fresh restrictions on Chinese telecom giant Huawei, there has been a significant rise in “Boycott Apple” movement in China. China slammed US President Donald Trump’s decision to prevent American companies from using foreign-made equipment.