Indian stock market: 8 key things that changed for market overnight - Gift Nifty, US retail sales to Nasdaq rally

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

Asian markets traded higher, while the US stock market ended with strong gains overnight after fresh economic data eased fears of recession in the US.

Traders increased bets for a 25-basis-point rate cut by the US Federal Reserve to 76.5%, versus 65% before the retail sales data.

On Wednesday, the Indian stock market benchmark indices ended the choppy session with minor gains.

The Sensex gained 149.85 points, or 0.19%, to close at 79,105.88, while the Nifty 50 settled 4.75 points, or 0.02%, higher at 24,143.75.

Indian stock market was closed on Thursday on account of Independence Day 2024.

“We expect the market to continue to consolidate in the near term and take cues from global factors,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Friday following overnight rally on Wall Street after strong economic data.

Japan’s Nikkei 225 jumped 2.26%, while the Topix rallied 2.08%. South Korea’s Kospi gained 2% and the Kosdaq rose 1.53%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 24,320 level, a premium of nearly 150 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 Thursday, with the Nasdaq rising more than 2% after July US retail sales data.

The Dow Jones Industrial Average rallied 554.67 points, or 1.39%, to 40,563.06, while the S&P 500 rose 88.01 points, or 1.61%, at 5,543.22. The Nasdaq Composite ended 401.90 points, or 2.34%, higher at 17,594.50.

Walmart shares jumped 6.58%, while Target and Costco shares also gained 4.35% and 1.69%, respectively. Cisco Systems share price rallied 6.8%, Nike stock price surged 5.07% and Ulta Beauty shares spiked 11.17%. Tesla stock price gained 6.34%.

US Retail Sales

US retail sales rose more than expected in July. Retail sales increased 1.0% last month after a downwardly revised 0.2% drop in June. Economists polled by Reuters had forecast retail sales advancing 0.3% after previously being reported as unchanged.

Jobless Claims

The number of Americans filing new applications for unemployment benefits unexpectedly fell last week. Initial claims for state unemployment benefits dropped 7,000 to a seasonally adjusted 227,000 for the week ended August 10. Economists polled by Reuters had forecast 235,000 claims for the latest week.

Dollar

The dollar hovered near a two-week high to the yen after its biggest one-day gain against major peers in four weeks, Reuters reported. The dollar index, which measures the greenback against six major peers including the yen, sterling and euro, was little changed at 103.20 after rallying 0.41% overnight, the most since July 18.

The dollar eased slightly to 149.11 yen, Sterling edged up slightly to $1.2859, building on its overnight 0.21% advance, while the euro was flat at $1.0973, following a 0.36% slide in the previous session.

US Treasury Yields 

US Treasury yields surged on Thursday after strong US economic data. The yield on the benchmark US 10-year note rose 10.6 basis points to 3.928%, wrapping up with the biggest absolute gain in a week. The 2-year note yield reached its highest since August 2, and was up 15.9 bps at 4.1055%, while the 30-year bond yield rose 7.7 bps to 4.1856%.

Oil Prices

Crude oil prices traded lower in early Asian trading on Friday.

Brent crude futures fell 0.2% to $80.88 per barrel, while the US West Texas Intermediate crude futures fell 0.3% to $77.93 a barrel. Brent was set to advance 1.6% on a weekly basis, while WTI was on track for gains of about 1.5%.

(With inputs from Reuters)

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