6 things that changed for the stock market over night - Gifty Nifty to Japan Q3 GDP data
- Domestic market benchmark indices expected to have a positive opening on Friday's trade with GIFT Nifty up over 39 points from Thursday's close on Nifty Futures amid mixed global cues.
The domestic market benchmark indices are expected to have a positive opening on Friday's trade with GIFT Nifty up 39.15 points from Thursday's close on Nifty Futures amid mixed global cues. The Gift Nifty is trading around 21,073 level as compared to the Nifty futures’ previous close of 21,033.85.
Asian stocks began to decline early on Friday, offsetting a Wall Street rally, as traders increased their bets that the Bank of Japan's negative interest rate policy would soon come to an end, according to Bloomberg report.
On Thursday, domestic equities benchmarks the Nifty 50 and the Sensex ended their seven-day winning run due to profit booking in a few heavyweights amid weak global cues. The outcomes of the US Fed's and the Reserve Bank of India's (RBI) monetary policies are currently the centre of attention for the market.
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The Monetary Policy Committee (MPC) of the Reserve Bank of India is currently holding a three-day policy meeting. The meeting ends on today. The US Federal Reserve is scheduled to make its policy announcement on Wednesday, December 13, of next week.
The 30-share BSE Sensex ended 132.04 points lower or 0.19% at 69,521.69, while the NSE Nifty 50 ended lower 36.55 points, or 0.17%, to close at 20,901.15.
According to Vinod Nair, Head of Research at Geojit Financial Services, the market took a breather, the investors are in a wait-and-watch mode ahead of the monetary policy announcement. A better-than-estimated Q2 GDP growth, ease in global oil prices and drop in global bond yield will be the silver lining for the MPC.
However, the expectation of a rise in domestic November inflation, drop in Rabi cultivation and increase in foodgrain prices will influence RBI to adopt a cautious approach in the short-term.
GIFT Nifty
The Gift Nifty is trading around 21,073 level as compared to the Nifty futures’ previous close of 21,033.85. It is up 39.15 points from Thursday's close on Nifty Futures and amid mixed global cues.
According to Rupak De, Senior Technical analyst at LKP Securities, the Nifty 50 remained sideways during the session, hovering within the bands of 20,850-20,950. Sentiment remains somewhat cautious ahead of the RBI policy meet. The near-term trend remains sideways to weak as long as it stays below 21,000, a psychologically crucial level. A decisive breakout above 21,000 might induce a resumption of the uptrend. Until then, we anticipate weakness over the near term.
Asian Markets
According to Bloomberg report early on Friday, Asian stocks declined, offsetting a Wall Street rally, as traders increased their bets that the Bank of Japan's negative interest rate policy would soon come to an end.
Amidst limited liquidity, Japanese stocks fell for a second day, and the yen gained over 1%. As contracts for mainland China indicated losses, Australian shares also declined. Following a rally in the Nasdaq 100 index on the back of renewed optimism about AI, Korean shares increased.
Wall Street
Wall Street rebounded on Thursday, ending its first three-day losing run since Halloween, according to an AP report.
The S&P 500 increased by 0.8%, or 36.25 points, to 4,585.59. The Nasdaq composite surged 193.28, or 1.4%, to 14,339.99, while the Dow Jones Industrial Average added 62.95, or 0.2%, to 36,117.38.
Big technology stocks drove the market higher, with Alphabet, the parent company of Google, rising 5.3%. Due to their enormous size, they are the most influential stocks on Wall Street, and they have had an incredible year thus far.
It had declared the opening of its Gemini artificial intelligence model a day earlier. Alphabet's stock fell on Wednesday after the announcement caused little stir on Wall Street at first, but JPMorgan analysts expressed their "encouragement" at Google's progress on this significant technological shift in a report, said AP in its news report.
The S&P 500 was pushed higher by Alphabet alone, but it was also up at least 1% for Apple, Amazon, and Nvidia.
Following the announcement of AbbVie's $8.7 billion acquisition of Cerevel Therapeutics and its pipeline of treatment candidates for Parkinson's, schizophrenia, and other illnesses, the company's stock also surged by 11.4%. 1.1% was added by AbbVie.
Japan Q3 GDP
Japan's economy shrank at an annualised rate of 2.9% from July to September compared with the prior quarter, less than the 2.1% decline initially predicted, according to government data released on Friday, as reported by Reuters.
The Cabinet Office's revised estimate of the GDP was compared to a Reuters poll where economists had predicted a 2.0% decline.
Comparing quarter-over-quarter GDP declines, the initial reading of 0.5% decline and the median forecast of 0.5% decline were both exceeded by the 0.7% quarterly decline.
Crude Oil
According to Reuters, although oil prices saw an early increase on Friday, they were expected to decline by 6% for the week and were close to six-month lows. Investors were concerned about the weak energy demand in Asia coupled with the high production of crude oil in the United States.
By 0136 GMT, U.S. West Texas Intermediate crude futures gained 64 cents, or 0.9%, to $69.98 a barrel, while Brent crude futures increased by 68 cents, or 0.9%, to $74.73 a barrel.
Treasury Yields
Treasury yields increased, according to a Bloomberg report, on speculation that bets on rate cuts by major central banks have gone too far. The Bank of Japan's hawkish signals also caused global bond markets to tremble as traders anticipated Friday's US jobs report.
Wall Street had to grapple with the possibility that the world's final negative interest-rate regime may be coming to an end, with less than a day remaining before the data that will assess the market's aggressive dovish repricing is released. The BOJ signal caused yields to rise generally and the Japanese yen to rise by nearly 2%.
The US 10-year yield increased by four basis points to 4.14%, while the yield on the two-year note barely changed. A slight increase in S&P 500 contracts indicates that the benchmark index will end its three-day decline. Nifty 100 futures performed better. The value of the dollar declined.
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