Indian stock market: 8 key things that changed for market overnight - Gift Nifty, Dow Jones’ record close to US GDP

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open higher on Friday following gains in global markets.

Asian markets traded higher, while the US stock market ended mixed after strong GDP data, with the Dow Jones hitting record close.

Market participants will await the July Personal Consumption Expenditures report in the US due later today, for further hints on the US Federal Reserve’s monetary policy easing trajectory.

On the domestic front, India’s GDP data for the April-June 2024 quarter will also be released today. India’s economic growth is expected to have slowed in Q1FY25 to 6.9% year-on-year, below the RBI’s estimate of 7.1% and the 7.8% growth rate of the previous quarter, a Reuters poll of 52 economists projected.

On Thursday, the Indian stock market indices ended higher after hitting record highs led by gains in select heavyweight stocks.

The Sensex rallied 349.05 points, or 0.43%, to close at 82,134.61, while the Nifty 50 settled 99.60 points, or 0.4%, higher at 25,151.95.

“Market continued its winning streak for the 11th consecutive day and we expect this gradual uptick to continue with the Nifty making fresh highs day by day. This will be supported by India’s rating being maintained globally (Rating agency Fitch affirmed India’s rating at 'BBB-' with a stable outlook) on the back of a strong medium-term growth outlook and strengthening fiscal credibility,” 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 Friday tracking a slew of economic data from Japan.

Japan’s Nikkei 225 gained marginally, and the Topix rose 0.23%. South Korea’s Kospi added 0.55%, while the Kosdaq rose 0.74%. Hong Kong Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 25,286 level, a premium of nearly 16 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Thursday, with the Dow notching a record high close.

The Dow Jones Industrial Average gained 0.59% to 41,335.05, an all-time closing high, while the S&P 500 index ended barely changed at 5,591.96. The Nasdaq ended 0.23% lower at 17,516.43.

Nvidia stock price declined over 6%, Microsoft shares rose 0.6%, while Alphabet stock declined 0.7% and Apple share price rose 1.5%. Broadcom and Advanced Micro Devices each dipped almost 1%. CrowdStrike stock price gained 2.8%, while Dollar General shares slumped 32%.

US GDP

The US economy grew faster than initially thought in the second quarter. Gross domestic product (GDP) increased at a 3.0% annualized rate last quarter. That was an upward revision from the 2.8% rate reported last month. The economy grew at a 1.4% pace in the first quarter. Economists polled by Reuters had forecast GDP would be unrevised at a 2.8% pace.

US Jobless Claims

The number of Americans filing new applications for jobless benefits slipped last week. Initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 231,000 for the week ended August 24. Economists polled by Reuters had forecast 232,000 claims for the latest week.

India GDP

Moody’s revised India’s GDP growth forecast upwards to 7.2% for 2024 and to 6.6% for 2025 from its earlier estimates of 6.8% and 6.4%, respectively, citing strong broad-based growth.

Tokyo Inflation

Core consumer prices in Japan’s capital Tokyo rose 2.4% in August from a year earlier. The increase in the core consumer price index (CPI), which excludes volatile fresh food costs, was faster than a median market forecast of 2.2% and the 2.2% gain in July.

Dollar

The dollar traded near a one-week high versus major peers on Friday, on track to snap a five-week losing run.

The US dollar index - which measures the currency against a basket of six major peers - was little changed at 101.34, after rising 0.36% on Thursday and touching the highest since August 22 at 101.58. It’s on course for a 0.66% gain this week.

(With inputs from Reuters)

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