Indian stock market: 8 key things that changed for market overnight - Gift Nifty, Asian markets to oil prices

Indian stock market: The domestic equity indices, Sensex and Nifty 50, are expected to open on subdued note Tuesday following mixed global market cues.

Asian shares traded flat, while the US stock market was closed on Monday for a holiday. Investors gauged comments from the European Central Bank officials and other key economic data.

On Monday, the Indian stock market benchmark indices ended flat after hitting their fresh record highs in intraday trade amid profit booking at higher levels.

The Sensex eased 19.89 points, or 0.03%, to close at 75,390.50, while the Nifty 50 settled 24.65 points, or 0.11%, lower at 22,932.45.

“Amidst the celebration, there looms a question regarding the sustainability of this bullish trend. The previous day unfolded with cautious trading, anticipating heightened volatility in the near term. With Nifty closing slightly lower, the market sentiment underscores a prevailing sense of caution,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 28

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded range bound on Tuesday after comments from the European Central Bank officials signaled rate cuts may be on the horizon.

Japan’s Nikkei 225 and Topix were flat. South Korea’s Kospi traded marginally higher, while the Kosdaq gained 0.42%. Hong Kong’s Hang Seng index futures indicated a slightly weaker opening.

Gift Nifty Today

Gift Nifty was trading around 23,020 level, a premium of nearly 20 points from the Nifty futures’ previous close, indicating a flat-to-positive start for the Indian stock market indices.

Wall Street

US markets were closed on Monday for a holiday. However, the futures on the Nasdaq 100 rose 0.4% to a record high, while European markets gained marginally.

Also Read: Australia shares flat as losses in bank stocks counter commodities gains

T+1 Trading Cycle

The US stock market will shift to T+1 (Trade + 1) trading cycle from Tuesday as per the Securities and Exchange Commission rule to shorten the settlement cycle for securities transactions from two business days after the trade to one.

ECB 

European Central Bank officials have batted for an interest rate cut next week as Olli Rehn, ECB governing council member, stressed that inflation in the euro area was falling in a “sustained way.”

“Thanks to this disinflationary process, inflation is converging to our 2% target in a sustained way, and the time is thus ripe in June to ease the monetary policy stance and start cutting rates,” Rehn said in a speech.

China Central Bank

The People’s Bank of China said it will conduct a 5 billion yuan 3-month central bank bill swap on May 28.

Also Read: Oil surges ahead of inflation data after lacklustre week

Oil Prices

Crude oil prices rose as geopolitical tensions in the Middle East escalated. West Texas Intermediate gained 1.22% from Friday’s close to $78.67 a barrel, with no settlement on Monday due to a US holiday, while Brent traded flat at $83.06.

Dollar

The US dollar eased following a slight increase in risk appetite, but it held tight ranges ahead of key inflation data from major economies this week. The US dollar index dipped 0.01% to 104.55 against a basket of currencies.

(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 making any investment decisions.