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Business News/ Markets / Stock Markets/  6 things that changed for market overnight: Gift Nifty, ECB rate hike to global market cues for Sensex today

The Indian stock market is expected to open higher Friday led by positive global cues amid improved domestic investor sentiment.

Asian markets traded higher, while the US stock market ended with gains overnight amid easing fears of recession in the world’s largest economy.

On Thursday, the domestic benchmark equity indices ended at record high level with the Nifty closing above 20,100-mark.

“We expect the market to maintain its positive trend on the back of strong domestic macroeconomic data. However, bouts of volatility cannot be ruled out given mixed global cues. Markets would track US PPI and retail sales data which would be important for the US Fed rate decision next week," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Here are key global market cues for Sensex today:

Asian Markets

Asian stock markets traded higher on Friday following overnight gains on Wall Street and ahead of the release of key economic data from China.

China will release August data for its unemployment rate, retail sales, house prices and urban investment.

Japan’s Nikkei 225 rallied 1.06% and the Topix gained 0.98%. South Korea’s Kospi rose 0.65%, while the Kosdaq traded flat.

Hong Kong’s Hang Seng index futures traded higher at 18,171, compared to the HSI’s last close of 18,047.92.

Australia’s S&P/ASX 200 jumped 1.56%. 

Meanwhile, Gift Nifty was trading higher at 20,226, as against Nifty futures’ previous close of 20,187, indicating a positive start for the Indian equity indices.

Wall Street

US stock market indices ended higher on Thursday after hotter-than-expected economic data eased recession worries without raising fears of a US Federal Reserve interest rate hike next week.

The S&P 500 ended 0.84% higher at 4,505.17 points, while Nasdaq gained 0.81% to 13,926.05. The Dow Jones Industrial Average closed 0.96% higher at 34,907.51 points.

Among stocks, HP shares fell 1.8% after Warren Buffett's Berkshire Hathaway sold about 5.5 million shares of the company.

Visa shares declined over 2%, while Moderna rose 3.9%.

ECB hikes interest rates to record high level

The European Central Bank (ECB) raised its key interest rate by 25 basis points (bps) to a record-high level of 4% on Thursday, and signalled this will likely be its final move in a more-than year-long fight against stubbornly high inflation.

The rate on the main refinancing operations now climbs to 4.50% and on the marginal lending facility to 4.75%. It marked the 10th straight increase since the central bank launched the most aggressive hiking cycle in its history in July last year.

Read here: ECB hikes interest rates to record high at 4% since introduction of Euro in 1999, signals end of hike cycle

Arm Holdings makes stellar Nasdaq debut

SoftBank’s Arm Holdings made a decent debut on the Nasdaq Thursday. Chip designer Arm's American Depositary Shares opened at $56.1 apiece compared with the initial public offering price of $51.

After the stellar listing, Arm share price surged 24.68% to close at $63.59, giving the British chip designer a valuation of $65 billion.

Arm secured a valuation of $54.5 billion on Wednesday after pricing its IPO at the top end of the marketed range, netting $4.87 billion for SoftBank, which still holds a 90.6% stake.

Read here: SoftBank’s Arm lists at $56.10 apiece in a stellar Nasdaq debut; surges nearly 25% to $65 billion valuation

US Economic Data

Retail sales in the US rose more than expected in August on higher gasoline prices, while initial claims for state unemployment benefits climbed to a seasonally adjusted 220,000 for the week ended Sept. 9 from 217,000 the week before.

Retail sales rose 0.6% last month. Data for July was revised lower to show sales advancing 0.5% instead of the previously reported 0.7%.

US producer prices increased by the most in more than a year in August as the cost of gasoline surged, the latest indication that the road to low inflation would be uneven, Reuters reported. 

The producer price index for final demand rose 0.7% last month, the largest gain since June 2022, the Labor Department said on Thursday. Data for July was revised slightly up to show the PPI advancing 0.4% instead of the previously reported 0.3%.

IRRA platform to overcome technical glitch

In a bid to overcome technical glitch or outages, Indian stock market is going to introduce Investor Risk Reduction Access (IRRA) platform for trading members from October 3, 2023.

“It is hereby informed, that the Investor Risk Reduction Access (IRRA) will be accessible to Trading Members across Exchanges starting from October 3, 2023," NSE circular said.

IRRA platform will be available to the trading member supporting Internet Based Trading (IBT) and Security Trading through Wireless Technology (STWT) for their investors. IRRA will not be available for Algo trading and Institutional clients.

Read here: Trading members of Indian stock market to get acccess to IRRA platform to overcome technical glitch, outages

(With inputs from Reuters)

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Updated: 15 Sep 2023, 07:25 AM IST
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