Indian stock market: 7 key things that changed for market overnight - Gift Nifty, ECB rate cut to US jobless claims

Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open on a flat note on Friday ahead of the Reserve Bank of India’s (RBI) monetary policy decision.

Asian markets traded mixed, while the US markets also closed mixed overnight dragged by technology and industrial stocks. 

Investors will now focus on the RBI monetary policy outcome to be announced later today. The RBI’s Monetary Policy Committee (MPC) headed by Governor Shaktikanta Das is expected to keep the repo rate unchanged for the eighth consecutive time at 6.5%, while also maintaining the status quo stance of ‘withdrawal of accommodation’.

However, analysts believe the RBI Governor’s commentary on inflation trajectory and future interest rate cut trajectory will be key to watch out for markets.

Read here: RBI MPC verdict today: Repo rate to inflation— here are key indicators to watch

On Thursday, the Indian stock market indices ended higher amid hopes of political stability and policy continuity after the Lok Sabha election 2024 results.

The Sensex gained 692.27 points, or 0.93%, to close at 75,074.51, while the Nifty 50 settled 201.05 points, or 0.89%, higher at 22,821.40.

“With the buoyancy returning to the market, the fear gauge volatility index also eased considerably and fell 11%. All eyes will now be on the Union Budget next month and the RBI’s commentary on interest rate to be announced in its credit policy,” said  Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Friday tracking mixed cues from Wall Street overnight and ahead of key economic data from China and Japan.

Japan’s Nikkei 225 and Topic were flat, while South Korea’s Kospi gained 1.45% and the Kosdaq rose 0.6%. Hong Kong’s Hang Seng index futures indicated a stronger opening.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — June 7

Gift Nifty Today

Gift Nifty was trading around 22,910 level, indicating a flat start for the Indian stock market indices.

Wall Street

The US stock market ended mixed on Thursday amid selling in technology and utility stocks, and as investors awaited the crucial US nonfarm payrolls report later today.

The Dow Jones Industrial Average rose 78.84 points, or 0.20%, to 38,886.17, the S&P 500 lost 1.07 points, or 0.02%, to 5,352.96 and the Nasdaq Composite lost 14.78 points, or 0.09%, to 17,173.12.

Nvidia shares fell 1.1%, while GameStop share price surged 47%. Lululemon Athletica stock price rose 4.8% and Five Below shares slumped 10.6%.

Also Read: Stocks and Bonds Fall in Run-Up to US Jobs Report: Markets Wrap

European Central Bank

The European Central Bank delivered its first interest rate cut since 2019 on Thursday, citing progress in tackling inflation even as it acknowledged the fight was far from over. ECB officials led by President Christine Lagarde cut the key deposit rate by 25 basis points (bps) to 3.75% from a record-high of 4.0%.

Read here: ECB lowers key interest rate by 25 bps to 3.75% over disinflation progress; first rate cut in 5 years

Jobless Claims

The number of Americans filing new claims for unemployment benefits increased last week. Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 229,000 for the week ended June 1, the Labor Department said. Economists polled by Reuters had forecast 220,000 claims in the latest week.

Japan Consumer Spending

Japanese household spending rose for the first time in 14 months in April from the year earlier. Consumer spending rose 0.5% in April YoY, slightly below the median market forecast for a 0.6% uptick. On a seasonally adjusted, month-on-month basis, spending fell 1.2%, versus an estimated 0.2% rise.

Oil Prices

Crude oil prices traded higher with the global benchmark Brent oil above $80 a barrel.

Brent crude oil rose 0.26% to $80.08 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.25% to $75.74.

Catch RBI Monetary Policy LIVE Updates here

(With inputs from Reuters)

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