Indian stock market: 7 key things that changed for market overnight - Gift Nifty, US inflation to tech stocks rally

Indian stock market: The domestic equity indices, Sensex and Nifty 50, are expected to open higher on Thursday led by positive trends in the global markets.

Asian markets traded higher, while the US stock market rallied overnight led by gains in technology stocks.

The US inflation report crushed hopes that the Federal Reserve would cut interest rates by 50 basis points next week. Traders changed their bets to a 85% probability for a 25 basis points cut by the Fed from 66% on Tuesday and the probability of a 50 basis point cut fell to 15% from 34% a day ago, according to CME Group's FedWatch tool.

Meanwhile, investors will watch out for India’s consumer price index (CPI) inflation data for August to be released later today.

On Wednesday, the Indian stock market ended volatile session lower, with both the indices falling half a percent each.

The Sensex declined 398.13 points, or 0.49%, to close at 81,523.16, while the Nifty 50 settled 122.65 points, or 0.49%, lower at 24,918.45.

“We expect the market to consolidate at a higher zone ahead of key events. Rate-sensitive sectors are expected to be in focus along with stock-specific action,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Thursday following overnight tech stocks-led rally on Wall Street.

Japan’s Nikkei 225 surged 3%, while Topix rallied 2.48%. South Korea’s Kospi rose 1.2% and the Kosdaq gained 2.5%. Hong Kong’s Hang Seng index futures indicated a higher opening, China’s CSI 300 futures were lower than its Wednesday close.

Gift Nifty Today

Gift Nifty was trading around 25,084 level, a premium of nearly 140 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended higher on Wednesday boosted by gains in technology stocks.

The Dow Jones Industrial Average gained 124.75 points, or 0.31%, to 40,861.71, while the S&P 500 rose 58.61 points, or 1.07%, to 5,554.13. The Nasdaq Composite ended 369.65 points, or 2.17%, higher at 17,395.53.

Nvidia stock price jumped 8%, while Goldman Sachs shares rose 0.9% and JPMorgan share price gained 0.8%. Trump Media & Technology Group shares slumped 10.5%, while First Solar share price rallied 15.2%, Sunrun stock price surged 11.3% and SolarEdge Technologies shares gained 8.5%. GameStop shares declined almost 12% and Albemarle shares jumped 13.6%.

US Inflation

US consumer prices rose marginally in August. The consumer price index (CPI) increased 0.2% last month after climbing 0.2% in July. US CPI advanced 2.5% on a year-on-year (YoY) basis, the smallest rise since February 2021 and followed a 2.9% increase in July. Economists polled by Reuters had forecast the CPI gaining 0.2% and rising 2.6% YoY.

Oil Prices

Crude oil prices traded higher after witnessing the biggest gain in more than two weeks. Brent crude futures for November rose 0.41% to $70.90 a barrel, while US crude futures for October gained 0.33% to $67.53.

Gold Rate Today

Gold prices were flat following the release of the US inflation print. Spot gold was subdued at $2,511.52 per ounce, while US gold futures eased 0.1% to $2,539.20.

US Dollar

The US dollar traded near a four-week high versus the euro and also gained against the yen. Dollar rose 0.38% to 142.905 yen, Reuters reported. The euro eased to $1.1007, sticking close to Wednesday's low of $1.1002, the weakest since August 16.

(With inputs from Reuters)

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