Indian stock market: 8 key things that changed for market overnight - Gift Nifty, Jerome Powell to US Treasury yields

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Thursday amid mixed cues from global peers.

Asian markets traded mixed, while the US stock market ended higher overnight, with all three major indices notching record highs.

On Wednesday, the Indian stock market benchmark indices ended with minor gains led by banking stocks.

The Sensex rose 110.58 points, or 0.14%, to close at 80,956.33, while the Nifty 50 settled 10.30 points, or 0.04%, higher at 24,467.45.

“Going forward, we expect Nifty to sustain its gradual upmove, driven by positive developments in government policies and a potential increase in liquidity resulting from the RBI’s upcoming policy decisions,” 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 mostly higher on Thursday following overnight rally on Wall Street.

Japan’s Nikkei 225 gained 0.88%, while the Topix rose 0.27%. South Korea’s Kospi fell 0.39% while Kosdaq declined 0.69%. Hong Kong’s Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 24,520 level, a discount of nearly 40 points from the Nifty futures’ previous close, indicating a weak start for the Indian stock market indices.

Wall Street

US stock market ended higher, with all three major indexes scoring record closing highs on Wednesday, led by technology shares and upbeat comments by Federal Reserve Chair Jerome Powell.

The Dow Jones Industrial Average rallied 308.91 points, or 0.69%, to 45,014.44, while the S&P 500 rose 36.59 points, or 0.60%, to 6,086.47. The Nasdaq Composite ended 254.21 points, or 1.30%, higher at 19,735.12.

Salesforce shares jumped 11% to hit an all-time high, while Marvell Technology stock price rallied 23.2%. Nvidia shares gained 3.5%.

Jerome Powell

US Federal Reserve Chair Jerome Powell said at a New York Times event that the economy is stronger now than the central bank had expected in September when it began reducing interest rates, and appeared to signal his support for a slower pace of interest-rate cuts ahead.

US Private Payrolls

US private payrolls increased at a moderate pace in November, the ADP National Employment Report showed. Private payrolls rose by 146,000 jobs last month after advancing by a downwardly revised 184,000 in October. Economists polled by Reuters had forecast private employment increasing by 150,000 positions after a previously reported 233,000 jump in October.

Fed’s Beige Book

US economic activity has expanded slightly in most regions since early October, with employment growth “subdued” and inflation rising at a modest pace and businesses expressing optimism about the future, the Federal Reserve said in a summary of surveys and interviews from across the country known collectively as the “Beige Book”.

US Services PMI

US services sector activity slowed in November after posting big gains in recent months. The Institute for Supply Management (ISM) said that its nonmanufacturing purchasing managers index (PMI) slipped to 52.1 last month after surging to 56.0 in October, which was the highest level since August 2022. Economists polled by Reuters had forecast the services PMI easing to 55.5.

Treasury Yields

US Treasury yields fell after softer economic data offset Federal Reserve officials’ comments. The benchmark US 10-year Treasury note yield fell 3.7 basis points to 4.184%, Reuters reported. The two-year yield fell 3.9 basis points to 4.132%.

(With inputs from Reuters)

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