Indian stock market: 6 key things that changed for market overnight - Gift Nifty, Wall Street rally to oil price drop

Indian stock market: The domestic equity indices, Sensex and Nifty 50, are expected to open higher on Wednesday amid mixed global market cues.

Asian markets traded mixed, while the US stock market ended with strong gains overnight as concerns over recession eased.

Traders are pricing in a 75% chance the Fed will cut rates by 50 basis points at its next policy meeting in September, and a 25% chance of a 25 basis point reduction, the CME Group's FedWatch Tool showed.

On Tuesday, the Indian stock market indices extended their losses into the third consecutive session amid concerns over an economic slowdown in the US, geopolitical tensions in the Middle East, and rich valuations of domestic equities.

The Sensex fell 166.33 points, or 0.21%, to close at 78,593.07, while the Nifty 50 settled 63.05 points, or 0.26%, lower at 23,992.55.

“Investors are now exercising caution and shifting towards defensive sectors such as FMCG, IT, and pharma. Nonetheless, the market is looking forward to the decline of crude prices and potential rate cuts by the US Fed & RBI to mitigate the downturn risk,” said Vinod Nair, Head of Research, Geojit Financial Services.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Wednesday tracking overnight gains on Wall Street and ahead of the trade data from China.

Japan’s Nikkei fell 1%, while the Topix rose 0.3%. South Korea’s Kospi gained 1% and the Kosdaq rallied 1.3%. Hong Kong Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 24,190 level, a premium of nearly 100 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stocks rebounded to end sharply higher on Tuesday as recent comments by Federal Reserve officials eased US recession worries.

The Dow Jones Industrial Average gained 294.39 points, or 0.76%, to 38,997.66, while the S&P 500 rallied 53.70 points, or 1.04%, to close at 5,240.03. The Nasdaq Composite ended 166.77 points, or 1.03%, higher at 16,366.85.

Nvidia stock price rallied 3.78% and Microsoft shares gained 1.13%, while Apple shares fell 0.97%. Super Micro Computer stock price plunged 13.28% and Airbnb shares slipped 16.64% in after-hours trading. Uber Technologies stock surged 10.93%.

LTCG Tax

The government has moved an amendment to the Finance Bill allowing long-term capital gains taxes on property acquired prior to July 23, 2024, to be calculated under the new 12.5% rate without indexation and the old 20% rate with indexation and allowing taxpayers to choose among these options.

Oil Prices

Crude oil prices declined on Wednesday after data showed an unexpected build in US crude oil and gasoline inventories.

Brent crude oil fell 0.24% to $76.30 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.31% to $72.97.

Dollar, Treasury Yields

US dollar recovered against major peers, while Treasury yields rose as fears of a US recession were seen as overdone. The dollar index was up 0.087% at 102.96. Treasury 10-year yields were flat after jumping 10 basis points to 3.89% Tuesday.

(With inputs from Reuters)

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