Indian stock market: 10 key things that changed for market overnight - Gift Nifty, US inflation to weak dollar
- Indian stock market: Gift Nifty was trading around 22,385 level, a premium of nearly 100 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Indian stock market: The domestic equity market is expected to open higher on Thursday tracking gains in global peers.
Asian markets traded higher while the US stock market ended at record high overnight after a smaller-than-expected rise in US consumer inflation bolstered hopes for interest rate cuts by the US Federal Reserve.
On Wednesday, the Indian stock market benchmark indices snapped three-day winning run to end lower.
The Sensex declined 117.58 points, or 0.16%, to close at 72,987.03, while the Nifty 50 settled 17.30 points, or 0.08%, lower at 22,200.55.
“Relentless FIIs selling and India Vix at elevated levels put pressure on the market. We expect the market to consolidate in a broader range as the election polling progresses and the result season nears the end,” 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 higher on Thursday following record close in Wall Street indices overnight and as investors assessed Japan GDP data.
Japan’s Nikkei 225 gained 0.9%, while the Topix rose 0.54%. South Korea’s Kospi rallied 1.49% and the Kosdaq jumped 1.3%. Hong Kong’s Hang Seng index futures indicated a muted opening.
Gift Nifty Today
Gift Nifty was trading around 22,385 level, a premium of nearly 100 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
The US stock market ended higher with all three major indexes notching record closes on Wednesday after slower growth in inflation.
The Dow Jones Industrial Average rallied 349.89 points, or 0.88%, to 39,908.00 while the S&P 500 surged 61.47 points, or 1.17%, at 5,308.15. The Nasdaq Composite ended 231.21 points, or 1.40%, higher at 16,742.39, its second record close in as many days.
Among stocks, Nvidia shares rose 3.6%, Microsoft share price gained 1.7% and Apple stock price rallied 1.2%. Super Micro Computer Inc shares jumped 15.8%.
GameStop shares plunged 18.9%, AMC Entertainment shares declined 20% and Koss Corp share price tanked 19.2%.
US Inflation
US consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend.
The US consumer price index (CPI) rose 0.3% last month after advancing 0.4% in March and February. In the 12 months through April, the CPI increased 3.4% after climbing 3.5% in March. Economists polled by Reuters had forecast the CPI gaining 0.4% on the month and 3.4% year-on-year.
US Retail Sales
US retail sales were flat in April. The unchanged reading in retail sales last month followed a slightly downwardly revised 0.6% increase in March. Retail sales were previously reported to have risen 0.7% in March. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, gaining 0.4% in April. Sales rose 3.0% year-on-year in April.
Japan GDP
Japan’s GDP contracted more than expected in the first three months of the year. Japan’s gross domestic product (GDP) contracted at an annualized rate of 2% in the first quarter, more than the 1.5% expected in a Reuters poll.
Treasury Yields
The US Treasury yields fell to five-week lows after inflation data. Benchmark 10-year yields were at 4.32% and got as low as 4.340%, the lowest since April 5. Two-year yields reached 4.711%, also the lowest since April 5.
Dollar
The US dollar slipped to multi-month lows after US core inflation hit its slowest in three years. The dollar index made its heaviest one-day percentage drop for the year so far overnight, falling 0.75% and was at a five-week low of 104.17 in early Asia trade, Reuters reported.
India Trade Deficit
India’s merchandise trade deficit widened to a four-month-high in April at $19.1 billion, up from $14.44 billion during April 2023. The goods trade deficit had stood at $15.6 billion in March 2024.
Oil Prices
Crude oil prices extended gains on signs of stronger demand in the US after slower inflation data. Brent futures rose 0.52% to $83.18 a barrel, while US West Texas Intermediate crude (WTI) gained 0.58% to $79.09.
(With inputs from Reuters)
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