Indian stock market: 10 things that changed for market overnight - Gift Nifty, US Fed policy to record high gold prices

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday, following a rally in global markets after the US Federal Reserve’s monetary policy outcome.

Asian markets traded higher, while the US stock market rallied overnight after the Fed policy.

The US Fed Chair Jerome Powell-led Federal Open Market Committee (FOMC) kept the benchmark federal funds rate unchanged, and signalled 50 basis points (bps) of rate cut later this year.

On Wednesday, the Indian stock market ended higher for the third consecutive session, with the benchmark Nifty 50 closing above 22,900 level.

The Sensex gained 147.79 points, or 0.20%, to close at 75,449.05, while the Nifty 50 settled 73.30 points, or 0.32%, higher at 22,907.60.

“While some consolidation is possible, the overall sentiment is likely to remain positive, favoring a ‘buy on dips’ approach. We are witnessing rotational participation across key sectors, with banking, financials, metals, and energy taking the lead. Traders should position themselves accordingly and remain selective in the broader market,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Thursday following overnight rally on Wall Street after the US Fed policy.

Japan markets are closed for a holiday. South Korea’s Kospi rose 0.64%, while the Kosdaq gained 0.55%. Hong Kong’s Hang Seng index futures indicated a tepid opening.

Gift Nifty Today

Gift Nifty was trading around 23,062 level, a premium of nearly 90 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.

Wall Street

US stock market ended higher on Wednesday after the Federal Reserve kept interest rates unchanged as widely expected.

The Dow Jones Industrial Average rallied 383.32 points, or 0.92%, to 41,964.63, while the S&P 500 gained 60.63 points, or 1.08%, to 5,675.29. The Nasdaq Composite closed 246.67 points, or 1.41%, higher at 17,750.79.

Tesla share price surged 4.68%, Nvidia stock price gained 1.81%, and Advanced Micro Devices shares rose 2.63%. Apple stock advanced 1.20%, while Boeing shares jumped 6.8%.

US Fed Policy

The US Federal Reserve kept its benchmark overnight interest rate unchanged in the 4.25% - 4.50% range, and indicated that two quarter-point interest-rate cuts were likely later this year. The central bank hiked its projection of US inflation for 2025 and downgraded the US economic growth forecast.

China Loan Prime Rate

China held benchmark lending rates steady for the fifth straight month in March, matching market expectations. The People’s Bank of China kept the one-year loan prime rate (LPR) at 3.1%, while the five-year LPR was unchanged at 3.6%. The PBOC has kept its 7-day rate, the country’s main policy rate, steady at 1.5%.

Trump - Zelensky Call

US President Donald Trump and Ukrainian President Volodymyr Zelenskyy agreed to work together to end Russia’s war with Ukraine, in what the White House described as a “fantastic” one-hour phone call, Reuters reported. Zelensky thanked Trump for US support and the two leaders agreed that technical teams would meet in Saudi Arabia in the coming days.

Gold Price Today

Gold prices surged to a record high after the US Federal Reserve policy. Spot gold rose 0.2% to $3,052.92 an ounce. Bullion reached an all-time high of $3,055.31 per ounce earlier in the session. US gold futures gained 0.7% to $3,061.00.

US Treasury Yields

US Treasury yields fell as policymakers indicated they anticipate the Fed funds target rate will be reduced by 50 basis points this year. The yield on benchmark US 10-year notes fell 3.3 basis points to 4.249%, while the 30-year bond yield fell 2 basis points to 4.5593%. The 2-year note yield fell 6.3 basis points to 3.979%.

Dollar

The US dollar gave back some gains after the central bank’s decision to keep rates unchanged. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.18% to 103.49, with the euro down 0.39% at $1.09. Against the Japanese yen, the dollar weakened 0.26% to 148.87.

Crude Oil Prices

Crude oil prices traded higher after the US Fed policy, while data showed robust fuel consumption. Brent crude oil rose 0.45% to $71.10 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.22% to $67.31.

(With inputs from Reuters)

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