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Business News/ Markets / Stock Markets/  Indian stock market: 6 things that changed for market overnight - Gift Nifty, Wall Street sell off to a steady dollar

Indian stock market: 6 things that changed for market overnight - Gift Nifty, Wall Street sell off to a steady dollar

  • Indian stock market: The Asian markets traded in the red, while the US stocks declined overnight, halting the recent rally witnessed amid optimism over easing monetary policies.

Japan’s Nikkei 225 dipped 1.31%, while the Topix declined 1.18%.

Indian stock market: The Indian benchmark equity indices Sensex and Nifty 50 are expected to open lower on Thursday, extending losses from the previous session, amid weak global cues.

The Asian markets traded in the red, while the US stocks declined overnight, halting the recent rally witnessed amid optimism over easing monetary policies.

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The domestic market ended with sharp losses on Wednesday as investors opted for profit booking after the indices hit record highs.

The Sensex slumped 930.88 points, or 1.30%, to end at 70,506.31, while the Nifty 50 ended 302.95 points, or 1.41%, lower at 21,150.15.

“Domestic equities are witnessing sell off after a sharp run up of more than 12% in the last seven weeks. We expect the market to consolidate in the near term as investors resort to profit booking and assess the potential risk of rising covid cases especially in Kerala and Karnataka, making them cautious in the market," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Overall, Khemka remains positive on the market and expects recovery after a pause supported by global macros along with interest rates peaking out and healthy domestic macros.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — December 21

Here are domestic and global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Thursday following overnight losses on Wall Street ahead of the release of GDP and inflation data in the US.

Japan’s Nikkei 225 dipped 1.31%, while the Topix declined 1.18%. South Korea’s Kospi fell 0.36% and the Kosdaq dropped 0.2%. Hong Kong’s Hang Seng index futures pointed to a weaker open. Australia’s S&P/ASX 200 declined 0.57%.

Gift Nifty

Gift Nifty was trading around 21,141 level as compared to Nifty futures’ previous close of 21,169, indicating a weaker start for the Indian benchmark indices.

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US stock market

The US stock market ended sharply lower on Wednesday after an abrupt mid-afternoon nosedive, with the S&P logging its worst day in two months.

The Dow Jones Industrial Average declined 475.92 points, or 1.27%, to 37,082, and the S&P 500 dropped 70.02 points, or 1.47%, to 4,698.35. The Nasdaq Composite ended 225.28 points, or 1.5%, lower at 14,777.94.

Among stocks, Alphabet shares gained 1.2%, Aon share price tumbled 6.0%, while FedEx shares plunged 12.1%. Micron Technology rallied 4.4% in extended trade.

US Consumer Confidence at 5-month high

US consumer confidence increased to a five-month high in December, with Americans growing more optimistic about current and future business conditions as well as the labor market.

The Conference Board's consumer confidence index increased to 110.7 this month, the highest reading since July, from a downwardly revised 101.0 in November. Economists polled by Reuters had forecast the index would rise to 104.0 from the previously reported 102.0.

Also Read: Day trading guide for stock market today: Five stocks to buy or sell on Thursday — 21st December

Dollar gains

The US dollar rose against a basket of currencies on Wednesday amid a rise in safe-haven appeal. The dollar was last up 0.28% at 102.42, on pace to break a two-day losing streak. The index had dropped about 1.5% for the week ended Tuesday. Ten-year US Treasury yields hit a seven-month low of 3.847%.

Meanwhile, the pound fell 0.76% to $1.2633, after slipping to a near 1-week low of $1.2625. The euro was stable at $1.0943, while the yen found support at 143.5 per dollar. China’s yuan was steady at 7.1480 to the dollar.

Japan lifts growth estimates

Japan’s government slightly raised its economic growth projections for this fiscal year from its previous estimates. In the twice-yearly economic outlook, the real economic growth rate for FY24 is estimated at 1.6%, up from 1.3% seen half a year ago as external demand contributed 1.4 percentage points to overall growth, Reuters reported.

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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