5 things that changed for market overnight: Gift Nifty, BoE monetary policy to global market cues for Sensex today
- Asian markets traded lower, while the US stock markets ended with steep losses overnight.
The Indian stock market indices are expected to open lower Friday tracking weakness in global peers amid worries over interest rates staying higher for longer that sent treasury yields soaring.
Asian markets traded lower, while the US stock markets ended with steep losses overnight.
The domestic benchmark equity indices witnessed an all-round selloff on Thursday with the Nifty 50 and Sensex ending in the negative territory for the third consecutive session.
“Market fell by 2.2% in the last three days amid profit booking at higher levels. Uncertain global cues and persistent selling by FIIs are likely to keep markets under pressure in the near term. It would be better to prefer defensive sectors for some time until the market stabilizes,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Friday following overnight losses on Wall Street amid dampened risk appetite.
Japan’s Nikkei 225 declined 1.15% ahead of the Bank of Japan’s decision, while the Topix fell 0.92%. South Korea’s Kospi dropped 0.87% and the Kosdaq eased 0.7%.
Hong Kong’s Hang Seng index futures traded lower at 17,585 compared to the HSI’s close of 17,655.41.
Australia’s S&P/ASX 200 slid 1.4%.
Meanwhile, Gift Nifty was trading at 19,669, as against Nifty futures’ previous close of 19,769, indicating a negative opening for the Indian benchmark index.
Wall Street
The US stock market indices ended sharply lower on Thursday amid worries that interest rates will remain higher for longer, while the benchmark 10-year US Treasury yields touched a 16-year peak.
The Dow Jones Industrial Average declined 370.46 points, or 1.08%, to 34,070.42, and the S&P 500 dropped 72.2 points, or 1.64%, to 4,330. The Nasdaq Composite ended 245.14 points, or 1.82%, lower at 13,223.99.
Among stocks, Amazon plunged 4.4%, Nvidia shares dipped 2.9% and Telsa share price declined 2.6%.
Broadcom shares fell 2.7%, while Cisco dropped 3.9.
FedEx rose 4.5% after reporting stronger profit for the latest quarter. Fox Corp and News Corp gained 3.2% and 1.3%, respectively, following news that Rupert Murdoch will step aside as chairman.
Klaviyo Inc gained 2.9%, while Arm Holdings lost 1.4% to just a dollar above its $51 offer price.
BoE keeps interest rate unchanged at 5.25%
The Bank of England (BoE) on Thursday kept its key interest rate unchanged at 5.25%, the highest level in more than 15 years. It was the first time since December 2021 that the BoE did not increase borrowing costs.
The BoE cut the gross domestic product (GDP) growth forecast for the July-September period to just 0.1% from August's forecast of 0.4% and noted clear signs of weakness in the housing market. The underlying growth in the second half of 2023 is also likely to be weaker than the 0.25% expected in August.
JPMorgan to add India to its Emerging-Markets Bond Index
JPMorgan Chase & Co. will add Indian government bonds to its benchmark emerging-market index. The inclusion could prompt flows of as much as $30 billion, according analysts.
The index provider will add the securities to the JPMorgan Government Bond Index-Emerging Markets starting June 28, 2024. India will have a maximum weight of 10% on the index, according to a statement Thursday.
Japan's August inflation rises 3.1%, stays above BOJ target for 17th month
Japan's core inflation was steady in August and stayed above the central bank's 2% target for a 17th straight month, data showed on Friday.
The nationwide core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, increased 3.1% in August from a year earlier, government data showed, compared with a median market forecast for a 3.0% gain. It followed a 3.1% rise in July.
(With inputs from Reuters)
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