7 things that changed for the stock market overnight - Gift Nifty, Dow Jones’ rally, OPEC output cut to India GDP growth

The Indian stock market indices, Sensex and Nifty 50, are expected to open higher on Friday as better than expected domestic GDP growth may lift sentiment amid mixed global cues.

Asian markets traded lower while the US stocks ended mixed overnight as Wall Street saw a late-day rebound in trading. The S&P 500 notched one of its biggest November rallies on record.

Market sentiment may be supported by better than estimated India’s GDP growth for the quarter ending September 2023.

On Thursday, the domestic benchmark indices ended choppy session higher.

The Sensex gained 86.53 points, or 0.13%, to close at 66,988.44, while the Nifty 50 settled 36.55 points, or 0.18%, higher at 20,133.15.

“Markets will react to the Exit poll outcome and India’s GDP data. Overall we expect a positive trend to continue in the market. Auto stocks will be in focus as OEMs will announce their monthly sales data,” 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 a mixed trend on Wall Street overnight and as investors gauged key economic data releases in the region.

Japan’s Nikkei 225 eased marginally, while the Topix gained 0.21%. South Korea’s Kospi declined 0.89% and the Kosdaq dropped 0.79%. Equity futures for Hong Kong edged higher. 

Gift Nifty

Gift Nifty was trading at around 20,329 level as compared to Nifty futures’ previous close of 20,269, signaling a positive opening for the Indian benchmark indices.

US Markets

The US stock market ended mixed with the Dow Jones Industrial Average closing at its highest level since January 2022 amid cooling inflation.

The Dow Jones Industrial Average rose 520.47 points, or 1.47%, to 35,950.89, while the S&P 500 gained 17.22 points, or 0.38%, to close at 4,567.8. The Nasdaq Composite ended 32.27 points, or 0.23%, lower at 14,226.22.

Among stocks, Salesforce shares rallied 9.4% after a higher-than-expected profit forecast. Ford Motor Co shares fell 3.1%.

Snowflake shares jumped 7.1%, while Pinterest and Snap Inc gained 2.4% and 6.5%.

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OPEC+ to deepen voluntary oil output cuts

OPEC+ oil producers on Thursday agreed to voluntary output cuts totalling about 2.2 million barrels per day (bpd) for early next year led by Saudi Arabia rolling over its current voluntary cut.

Read here: OPEC+ agrees to 1 million bpd oil output cut, extends Saudi Arabia's voluntary reduction

US PCE price index, consumer spending cool

US inflation as measured by the personal consumption expenditures (PCE) price index was unchanged in October after rising 0.4% in September. In the 12 months through October, the PCE price index increased 3.0%.

Consumer spending increased 0.2% last month after an unrevised 0.7% gain in September, the Commerce Department's Bureau of Economic Analysis said.

India GDP grows better than estimates

The Indian economy grew 7.6% in the September quarter, retaining its crown as the world’s fastest-growing major economy. The GDP growth in September quarter rose sharply above D-Street estimates along with growth projections by the Reserve Bank of India (RBI). The RBI had maintained real GDP growth for Q2 of FY 2023-24 at 6.5%.

Read here: India remains fastest-growing major economy, Q2 GDP growth beats RBI estimates: 5 key takeaways

Japan factory activity shrinks

Japan's factory activity shrank at the fastest pace in nine months in November. The final au Jibun Bank Japan manufacturing purchasing managers’ index (PMI) was at 48.3 in November.

The reading, although slightly better than flash 48.1 but below October's reading of 48.7. It also marked the sixth month the PMI was below the 50.0 threshold that separates growth from contraction, Reuters reported.

(With inputs from Reuters)

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