8 things that changed for the stock market overnight - Gift Nifty, US inflation to MSCI index rejig | Mint
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Business News/ Markets / Stock Markets/  8 things that changed for the stock market overnight - Gift Nifty, US inflation to MSCI index rejig
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8 things that changed for the stock market overnight - Gift Nifty, US inflation to MSCI index rejig

The Asian markets surged after a rally in US stocks, while dollar and Treasury yields declined, as lower-than-expected US inflation data raised expectations that the US Federal Reserve will not hike interest rates further.

Japan’s Nikkei 225 rallied 1.58% and the Topix gained 1.24%. (Photo: Getty Images)Premium
Japan’s Nikkei 225 rallied 1.58% and the Topix gained 1.24%. (Photo: Getty Images)

The Indian stock market indices, Nifty 50 and Sensex today are expected to open higher on Wednesday tracking positive global cues amid a rally in Asian and US markets.

The Asian markets surged after a rally in US stocks, while dollar and Treasury yields declined, as lower-than-expected US inflation data raised expectations that the US Federal Reserve will not hike interest rates further.

Indian markets were shut for a holiday on November 14. On Monday, the domestic benchmark equity indices ended half a percent lower amid mixed global cues. 

The Sensex closed 325.58 points, or 0.50%, lower at 64,933.87, while the Nifty 50 declined 82.00 points, or 0.42%, to settle at 19,443.55.

“Investors would react to inflation data. In this truncated trading week, we expect the market to consolidate in a broader range due to lack of major events and Q2 earning season coming to an end," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Here are key domestic and global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Wednesday following overnight rally on Wall Street after softer US inflation bolstered bets that hopes of the US Fed nearing the end of its interest rate-hiking cycle.

Data showed Japan’s gross domestic product (GDP) fell 2.1% in Q3, while investors will monitor data from China later today.

Japan’s Nikkei 225 rallied 1.58% and the Topix gained 1.24%. South Korea’s Kospi rose 1.83%, while the Kosdaq rallied 2.15%.

Hong Kong’s Hang Seng index futures were higher at 17,935 compared to the HSI’s close of 17,396.86

Australia’s S&P/ASX 200 surged 1.42%.

Gift Nifty was trading around 19,734 level as against Nifty futures’ previous close of 19,488, indicating a gap-up opening for the Indian benchmark indices.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — November 15

Wall Street

US stock market indices ended sharply higher on Tuesday as softer-than-expected inflation data increased bets that the US Federal Reserve may be done raising interest rates.

The Dow Jones Industrial Average rallied 489.83 points, or 1.43%, to 34,827.70, while the S&P 500 jumped 84.15 points, or 1.91%, to end at 4,495.70 points. The Nasdaq Composite ended 326.64 points, or 2.37%, higher at 14,094.38. 

Among stocks, Snap Inc shares gained 7.38%, while Home Depot rose 5.4% after the company beat quarterly profit estimates. Tesla share price rallied 6.12%. Microsoft shares gained nearly a percent to hit all-time high.

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US inflation eases

US consumer prices were unchanged in October amid lower gasoline prices, and underlying inflation showed signs of slowing, the Labor Department's Bureau of Labor Statistics (BLS) said, following a 0.4% rise in September.

In the 12 months through October, consumer inflation in the US increased by 3.2% after rising 3.7% in September. Economists polled by Reuters had forecast the CPI gaining 0.1% on the month and increasing 3.3% on a year-on-year basis.

Dollar sinks, yields drop

The US dollar declined more than 1% against major currencies on Tuesday, while US Treasury yields also plunged after US consumer price data showed the pace of inflation moderating further in October. 

Read here: US Dollar tumbled most in a year as traders bet on the end of US hikes

The dollar index, a measure of the US currency against six peers, slid 1.55% to 103.980, its biggest drop in a year. The benchmark 10-year fell below 4.5%.

The dollar slipped 1.73% against the euro to $1.089, 1.82% against the British pound to $1.250 and 1.52% against the Swiss franc to 0.888, Reuters reported.

Japanese economy shrinks 0.5% in Q3

Japan’s economy contracted a bigger-than-expected 0.5% in the three months to September, government data showed. The data was worse than market expectations of a 0.1% contraction in the world’s third largest economy.

Private demand was down 0.6%. Exports grew 0.5%, while imports rose 1.0%.

India’s inflation at 4-month low

India's retail inflation, measured by the consumer price index (CPI), eased to 4.87% in October, recording a four month low, according to data. The retail inflation print came in at 5.02% in September.

US House passes bill to avoid shutdown

The US House of Representatives has successfully passed a bill to prevent a government shutdown before the holiday season, securing broad bipartisan support with a vote of 336 to 95, Fox News reported.

Only two Democrats and 93 Republicans voted against the bill. The legislation will now advance to the Senate.

MSCI Index Rejig

IndusInd Bank, One 97 Communications, Tata Motors ‘A’ and Suzlon Energy shares are among nine stocks that have been included in the MSCI Global Standard Index.

Read here: MSCI Index Rejig: Paytm, IndusInd Bank, Suzlon among nine stocks included in Standard Index

As per the latest announcement by the global index provider, the other stocks included in MSCI India Index are APL Apollo Tubes, Macrotech Developers, Persistent Systems, Polycab India and Tata Communications.

(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: 15 Nov 2023, 07:36 AM IST
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