6 things that changed for the stock market over weekend - Gift Nifty to Moody’s US outlook cut | Mint
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Business News/ Markets / Stock Markets/  6 things that changed for the stock market over weekend - Gift Nifty to Moody’s US outlook cut
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6 things that changed for the stock market over weekend - Gift Nifty to Moody’s US outlook cut

The Asian markets traded higher, while the US shares rallied as a drop in Treasury yields improved sentiment.

Japan’s Nikkei 225 rallied 0.96% and the Topix gained 0.50%. (Photo: Getty Images)Premium
Japan’s Nikkei 225 rallied 0.96% and the Topix gained 0.50%. (Photo: Getty Images)

The Indian stock market indices, Nifty 50 and Sensex, are expected to open higher on Monday tracking positive global cues.

The Asian markets traded higher, while the US shares rallied as a drop in Treasury yields improved sentiment.

The domestic market benchmarks Nifty 50 and Sensex registered healthy gains on Diwali Muhurat Trading session on Sunday. The Sensex rallied 354.77 points, or 0.55%, to end at 65,259.45, while the Nifty 50 closed 100.20 points, or 0.52%, higher at 19,525.55.

“Indian Indices rose in the Muhurat trading session in-line with most such sessions in the past, helped also by positive global cues. After a great year for broader equity markets, investors are looking forward to markets continuing rising though not at the same pace. They remain a bit apprehensive of the key risks including outcome of elections, inflation and interest rate trajectory and geopolitical events induced negatives," said Dhiraj Relli, MD & CEO, HDFC Securities.

Read here: Diwali Muhurat Trading 2023: Nifty 50 jumps 100 points; Sensex closes at 65,259

Here are key global market cues Sensex today:

Asian Markets

Asian markets traded mostly higher on Monday following a tech-driven rally on Wall Street on Friday.

Japan’s Nikkei 225 rallied 0.96% and the Topix gained 0.50%. South Korea’s Kospi rose 0.58%, while the Kosdaq gained 0.50%.

Hong Kong’s Hang Seng index futures stood higher at 17,372, compared with the HSI’s close of 17,203.26.

Australia’s S&P/ASX 200 traded 0.27% lower.

Meanwhile, Gift Nifty was trading around 19,560 level as against Nifty futures’ previous close of 19,536, indicating a positive start for the Indian benchmark indices.

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Wall Street 

US stock market indices ended with strong gains on Friday led by heavyweight tech and growth stocks as Treasury yields eased.

The Dow Jones Industrial Average rallied 391.16 points, or 1.15%, to 34,283.1, while the S&P 500 gained 67.89 points, or 1.56%, to 4,415.24. The Nasdaq Composite ended 276.66 points, or 2.05%, higher at 13,798.11.

The tech-heavy Nasdaq Composite posted its biggest one-day percentage rise since May 26, while the S&P 500 posted its highest closing level since September 19.

Also Read: Week Ahead: Inflation data, FII activity, global cues among key market triggers this week

Among stocks, Nvidia shares jumped about 3%, Meta Platforms stock price surged 2.6% and Microsoft share price gained 2.5%. Illumina shares declined 8% after the company trimmed its full-year profit forecast for the second straight quarter.

Moody’s cuts US outlook

Moody’s Investors Services lowered its outlook on the US credit rating to “negative" from “stable" on Friday. The rating agency said it expects America’s fiscal deficits will remain very large, significantly weakening debt affordability. Moody’s retained its AAA credit rating on US government debt. 

Read here: Moody's cuts US outlook to ‘negative’, Washington is furious

According to the rating agency, the diminished fiscal strength of the US, undone by extreme partisanship in Washington, was a key driver of the action.

Japan’s wholesale inflation slows sharply 

Japanese wholesale inflation slowed below 1% for the first time in just over 2-1/2-years, data showed on Monday. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, increased 0.8% in October from a year earlier, but cooled significantly from a 2.2% rise in September, Reuters reported.

This marked the tenth straight month of slowing wholesale inflation with the year-on-year growth rate coming in below 1% for the first time since February 2021, as per the data.

US consumer sentiment falls

US consumer sentiment fell for a fourth straight month in November and households’ expectations for inflation rose again, a survey showed on Friday. The University of Michigan’s preliminary reading of its Consumer Sentiment Index dropped to 60.4, the lowest level since May, from October's final reading of 63.8. The median expectation among economists in a Reuters poll had been for the index to be little changed at 63.7.

Meanwhile, over a five-year horizon, consumers expect inflation to average 3.2%, up from 3.0% in October and the highest since March 2011.

Oil prices drop

Crude oil prices declined on Monday amid renewed concerns over waning demand in the United States and China dented market sentiment.

Brent crude futures for January fell 0.50% to $81.02 a barrel, while the US West Texas Intermediate (WTI) crude futures for December fell 0.54% to $76.75.

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 13 Nov 2023, 07:20 AM IST
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