Indian stock market: 6 key things that changed for market overnight- Gift Nifty, Wall Street sell-off to Treasury yields

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open lower on Thursday ahead of the announcement of Reserve Bank of India’s (RBI) monetary policy later today, tracking weakness in global markets.

Asian markets traded lower, while the US stock market ended with major losses overnight as technology stocks dragged.

The RBI is expected to hold repo rates steady at 6.5% for a ninth straight meeting. However, all eyes will be on RBI Governor Shaktikanta Das’ outlook on India’s inflation and GDP growth.

On Wednesday, the Indian stock market witnessed a decent recovery with both the frontline indices ending over a percent higher, snapping their three-day losing streak, supported by positive global cues.

The Sensex surged 874.94 points, or 1.11%, to close at 79,468.01, while the Nifty 50 settled 304.95 points, or 1.27%, higher at 24,297.50.

“Global factors & headwinds are likely to persist which could continue to impact Indian markets over the next few days. Nifty saw a relief rally, but volatility cannot be ruled out. All eyes will be on RBI policy outcome today where the committee is expected to maintain the interest rate. Hence, interest-sensitive sectors and stocks would be in focus,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Thursday tracking overnight losses on Wall Street.

Japan’s Nikkei 225 fell 1.7%, while the Topix declined over 1%. South Korea’s Kospi dropped 1.2%, and the Kosdaq fell 1%. Hong Kong’s Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 24,175 level, a discount of nearly 200 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.

Wall Street

US stock market ended lower on Wednesday, with the Nasdaq falling 1%, dragged by selling in technology shares.

The Dow Jones Industrial Average declined 234.21 points, or 0.6%, to 38,763.45, while the S&P 500 fell 40.53 points, or 0.77%, to 5,199.5. The Nasdaq Composite ended 171.05 points, or 1.05%, lower at 16,195.81.

Nvidia shares dropped 5.08%, while Advanced Micro Devices share price declined 1.16%. Walt Disney stock price fell 4.5%, Super Micro Computer stock plunged 20.1% and Dell Technologies shares dropped 4.9%.

US Treasury Yields

US government bond yields rose after soft demand for the Treasury Department’s $42-billion sale of 10-year notes.

The yield on benchmark US 10-year notes rose 7 basis points (bps) to 3.958%, while the 30-year bond yield rose 8.1 bps to 4.2579%. The two-year note yield fell 0.2 bps to 3.9827%.

Dollar

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, gained 0.2% at 103.19. Against the yen, the dollar strengthened 2.22% to 147.51.

Oil Prices

Crude oil prices traded higher, with the benchmark Brent oil rising above $78 a barrel.

Brent crude oil gained 0.27% to $78.54 a barrel, while the US West Texas Intermediate (WTI) crude futures rose 0.41% to $75.54.

(With inputs from Reuters)

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