Indian stock market: 6 key things that changed for market overnight - Gift Nifty, FII selling to rising oil prices
- Indian stock market: Gift Nifty was trading around 24,065 level, a discount of nearly 50 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open weak on Tuesday following cautiousness in global markets ahead of the US Presidential Election 2024 and US Federal Reserve policy meeting later this week.
Asian markets traded mixed, while the US stock market ended lower overnight and the safe-haven US Treasury yields declined.
Investors were largely pricing in a Fed rate cut of 25 basis points (bps) at its policy announcement on Thursday, with CME’s FedWatch Tool showing markets pricing in a 98% chance of a cut, with only a 2% chance the central bank keeps rates steady, Reuters reported.
On Monday, the Indian stock market ended sharply lower amid an across-the-board selloff with both the benchmark indices tumbling over 1% each.
The Sensex crashed 941.88 points, or 1.18%, to close at 78,782.24, while the Nifty 50 settled 309.00 points, or 1.27%, lower at 23,995.35.
“Markets witnessed broader sell-off as investors turned risk averse ahead of key US election outcome and Federal Reserve’s policy decision in the next few days. While stretched valuation concerns have been weighing for sometime, the persistent foreign fund outflows have created a lot of uncertainty amongst the investors resulting in a steep correction. Also, corporate earnings have failed to meet expectations, which has further dampened investors’ sentiment,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asia markets traded mixed on Tuesday tracking overnight weakness on Wall Street as investors looked ahead to the US presidential election and a possible interest rate cut from the US Fed this week.
Japan’s Nikkei 225 gained 0.68%, while the Topix rose 0.33%. South Korea’s Kospi declined 0.67%, while the Kosdaq added 0.25%. Hong Kong’s Hang Seng index futures indicated a slightly higher opening.
Gift Nifty Today
Gift Nifty was trading around 24,065 level, a discount of nearly 50 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended lower on Monday ahead of the Presidential Elections and the Fed policy later this week.
The Dow Jones Industrial Average declined 257.59 points, or 0.61%, to 41,794.60, while the S&P 500 fell 16.11 points, or 0.28%, to 5,712.69. The Nasdaq Composite closed 59.93 points, or 0.33%, lower at 18,179.98.
Nvidia stock price gained 0.48%, while Intel shares plunged 2.93%. Trump Media & Technology Group rallied 12.37%, Marriott International shares fell 1.59% and Constellation Energy tumbled 12.46%.
Oil Prices
Crude oil prices steadied after jumping almost 3% on Monday after OPEC delayed plans to increase production and as tensions escalated in the Middle East.
Brent crude oil rallied 2.71% to $75.08 a barrel, while the US West Texas Intermediate (WTI) crude futures eased 0.10% to $71.40.
Gold Prices
Gold prices were flat as investors refrained from taking big bets ahead of the US presidential election, with the US Fed policy meeting later this week, Reuters reported. Spot gold was flat at $2,734.71 per ounce, while US gold futures eased by 0.1% to $2,743.40.
FII Selling
On Monday, Foreign institutional investors (FIIs) net sold Indian shares worth ₹4,329.79 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹2,936.08 crore, as per provisional data available on the exchanges.
(With inputs from Reuters)
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