Indian stock market: 8 key things that changed for market overnight - Gift Nifty, GDP data to all eyes on RBI policy
- The Indian stock market is expected to open positively with GIFT Nifty up 30.25 points amid mixed global cues. Asian stocks continue to show momentum, and despite recent volatility, the Nifty 50 and Sensex have shown gains, indicating potential recovery opportunities.
Indian stock market: The domestic market benchmark indices are anticipated to have a positive opening on Monday's trade with GIFT Nifty up 30.25 points from Friday's close on Nifty Futures amid mixed global cues.
Asian stocks showed positive momentum for a second straight day, taking inspiration from Friday's gains on Wall Street. Additionally, the dollar gained strength following President-elect Donald Trump's advice to the BRICS nations, suggesting they should avoid creating a competing currency to the US dollar, as per Bloomberg report.
On Friday, during the last trading session of the week, the key domestic indices, Nifty 50 and Sensex, experienced positive movement, indicating progress for the Indian stock market. Despite recent volatility stemming from factors such as fund outflows, lower-than-expected Q2 earnings from several companies, and persistently high inflation, signs of resilience are emerging.
The Sensex closed at 79,802.79 points, up by 759.05 points, while the Nifty 50 finished at 24,131.10 points, gaining 216.95 points. According to analysts, these gains suggest potential recovery opportunities for both investors and the market as a whole.
Here are key global market cues for Nifty 50 and Sensex today:
GIFT Nifty
The domestic market benchmark indices are expected to open positively for Monday's trade, with GIFT Nifty indicating an increase of 30.25 points from Friday's close on Nifty Futures. This positive outlook comes amid a backdrop of mixed signals from global markets, suggesting a cautious yet optimistic start for investors.
Asian Markets
Asian markets experienced a boost thanks to encouraging economic data from China, and Wall Street equities also finished higher on Friday. This upward trend in Asian stocks marked a second consecutive day of gains, reflecting the positive momentum from Wall Street. The dollar gained strength after President-elect Donald Trump urged the BRICS nations to avoid developing a currency that could challenge the US dollar.
The MSCI index of Asian equities continued its positive trajectory, with shares from Taiwan and Hong Kong standing out as notable contributors to this growth.
Wall Street
Global stock markets surged on Friday, with Wall Street ending November with its largest monthly gain in a year, fueled by optimism for growth following the election. Meanwhile, the dollar weakened, influenced by expectations of stricter rates in Japan and easing in Europe, according to a Reuters report.
US trading was light the day after Thanksgiving, as many investors opted for a long weekend. Stocks and bonds closed early, and most month-end position adjustments were completed prior to the holiday.
The S&P 500 climbed by 0.56%, achieving its best monthly gain since November 2023 at 5.14%. Similarly, the Nasdaq rose by 0.83% on Friday, resulting in a 6.2% increase for the month, marking its highest gain since May.
US Job Growth
US hiring likely surged in November after hurricanes and a major strike hampered job growth the previous month, reflecting a labour market that remains healthy but is gradually cooling, according to a Bloomberg report.
Nonfarm payrolls are expected to have increased by 200,000 in November, based on a Bloomberg survey of economists. The data, set to be released on Friday, is also anticipated to show that the unemployment rate remained steady at 4.1%.
GDP numbers
India's Gross Domestic Product (GDP) experienced a setback, declining to 5.4%, which marks the slowest growth rate in two years.
RBI policy
Vinod Nair, head of research at Geojit Financial Services, stated, "While the slowdown in economic growth will affect sentiment, investors are likely to respond to the upcoming monetary policy announcement from the Reserve Bank of India."
The RBI is anticipated to maintain interest rates at its meeting on December 6. However, the increasing likelihood of a rate cut due to the lackluster growth data could generate buying interest among investors, particularly in rate-sensitive sectors such as financial services, automotive, consumer goods, and real estate, according to two analysts, as per reports.
Trump Tariff Talk
President-elect Donald Trump expressed concerns on Saturday about the potential actions of a group of nine nations that could undermine the US dollar. In response to this situation, he suggested the possibility of implementing 100 percent tariffs as a measure to protect the dollar's stability. This statement was directed toward countries in the BRIC alliance, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates, according to an AP news report.
Crude Oil
Oil prices increased slightly on Monday, boosted by positive factory activity in China, the world's second-largest oil consumer. Additionally, tensions in the Middle East rose as Israel resumed attacks on Lebanon despite a ceasefire agreement, according to a Reuters report.
Brent crude futures rose by 8 cents, or 0.1%, reaching $71.92 a barrel by 01:07 GMT, while US West Texas Intermediate crude also gained 9 cents, or 0.1%, to $68.09 a barrel.
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