Indian stock market: 6 key things that changed for market overnight - Gift Nifty, US PPI inflation to Nasdaq at high

Share market today: The domestic market benchmark indices Sensex and the Nifty 50, are expected to open in green on Wednesday amid positive global cues.

Asia's shares rose after a significant tech-driven surge in US benchmarks, and investors are waiting for important inflation data later on Wednesday to get a sense of what the Federal Reserve will do next. 

On Tuesday, May 14, amid mixed global cues, the Sensex and the Nifty 50 finished the day in positive territory for the third straight session.

Market benchmarks rose this week following an almost 2% decline the previous week, helped by some relief on the valuation front. The high prospects for the country's economic development mean that the medium- to long-term forecast for the Indian stock market is still strong.

Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 15

On Tuesday, the BSE Sensex closed at 73,104.61 after rising by 328.48 points, or 0.45%. The Nifty 50 rose by 113.80 points, or 0.51%, to settle at 22,217.85

With the help of favorable cues from its Asian counterparts and a drop in India's CPI, the local market has continued its recovery path from recent lows, according to Vinod Nair, Head of Research at Geojit Financial Services. Given the continued uncertainty around the low turnout, volatility and range-bound trading are likely here to stay.

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

Asian Markets

Following a notable tech-driven spike in US benchmarks, Asia's stocks gained. Investors are now anticipating key inflation data later on Wednesday to gauge the Federal Reserve's next move.

Due to public holidays, the financial markets in South Korea and Hong Kong are closed on Wednesday.

Also Read: Weekly stocks: Motilal Oswal recommends these 3 shares to buy this week

Gift Nifty Today

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 22,370.50 level, a premium of 58.5 points from the Nifty futures’ previous close.

Wall Street

In the first of two highly anticipated US pricing reports, investors dismissed data showing April wholesale inflation above forecasts, which led to Wall Street stocks rising on Tuesday, with the Nasdaq closing at an all-time high, according to an AFP report.

The S&P 500 index increased by 0.5%, or 25.26 points, to 5,246.68. It was at its lowest point since late March, down around 0.1%. The Dow Jones Industrial Average reached 39,558.11 up 126.60 points, or 0.3%.

US producer inflation

US producer prices rose more than anticipated in April, according to a Reuters report, despite sharp increases in the price of services like accommodation and portfolio management. This suggests that early in the second quarter, inflation remained persistently high.

The Bureau of Labor Statistics of the Labor Department said that the producer price index for final demand increased by 0.5% in March following a downwardly revised 0.1% decline in March.

Also Read: April CPI inflation hits an 11-month low; can RBI cut rates in the near future? Experts weigh in

US Treasury Yields

Bond yields fell slightly, according to an AP report. After peaking at 4.49% late on Monday, the yield on the 10-year Treasury fell to 4.45%. With the Federal Reserve's activities more closely anticipated, the yield on the two-year Treasury declined from 4.86% to 4.82%.

Dollar Index

The euro was close to hitting a one-month high and was last seen at $1.0817, but the dollar was trailing the euro in the currency market as traders continued to be cautious in their moves ahead of the CPI report, according to a Reuters report.

The U.S. currency is compared to six other currencies in the dollar index, which was last at 105.01. With traders cautious of yet another round of interventions from Japanese authorities, the yen hit a two-week low of 156.80 per dollar on Tuesday and was last trading at 156.36 to the dollar.

Also Read: Stock market today: Sensex, Nifty 50 rise for 3rd consecutive session; investors earn nearly ₹5 lakh crore in a day

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