Indian stock market: 6 key things that changed for market overnight - Gift Nifty, upbeat US dollar, yields to weak yen

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday tracking weakness in Asian peers.

Asian markets traded lower, while US stock indices ended the choppy session overnight with minor gains ahead of a presidential debate and an inflation report closely watched by Federal Reserve policy makers.

Market participants await the crucial personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge used to decide on the path of monetary policy, to be released on Friday.

Investors see a 56.3% chance of a 25-basis point rate cut in September, and about two cuts by the year-end, LSEG data showed.

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On Wednesday, the Indian stock market benchmark indices ended at record closing highs, with the Nifty 50 crossing 23,850 for the first time ever, led by banks and heavyweights.

The Sensex jumped 620.73 points, or 0.80%, to close at 78,674.25, while the Nifty 50 settled 147.50 points, or 0.62%, higher at 23,868.80.

“Overall optimism surrounding the Union Budget, increasing FII inflows, and robust domestic economic data contributed towards the positive movement in the market. We expect the ongoing uptrend to continue further,” said Siddhartha Khemka, Senior Group VP, Head - Research, Broking & Distribution, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Gift Nifty Today

Gift Nifty was trading around 23,800 level, a discount of nearly 70 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

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Asian Markets

Asian markets traded lower on Thursday as the Japanese yen weakened to a near 38-year low and ahead of economic data in the region.

Japan’s Nikkei 225 fell 0.93% while the Topix declined 0.36%. South Korea’s Kospi dropped 1% and the Kosdaq gained 0.24%. Hong Kong Hang Seng index futures indicated a lower opening.

Wall Street

US stock market indexes closed with modest gains on Wednesday ahead of the release of an inflation report.

The Dow Jones Industrial Average gained 16.10 points, or 0.04%, to 39,128.26, while the S&P 500 rose 8.61 points, or 0.16%, to 5,477.91. The Nasdaq Composite ended 87.50 points, or 0.49%, higher at 17,805.16.

Nvidia shares rose 0.25%, Apple share price rose nearly 2%, while Tesla stock gained 4.81% and Amazon shares rose 3.90%.

Whirlpool share price surged 17.1% and FedEx stock price jumped 15.53%. Rivian shares rallied 23.24% and General Mills shares declined 4.59%.

Read here: Wall Street ends slightly up, trade choppy ahead of inflation data

Dollar, Treasury Yields

The dollar index, a measure of the US currency’s value against six major currencies, hovered near a roughly two-month high and steadied at 106.05, helped by elevated US Treasury yields, Reuters reported. 

The Japanese yen was near a 38-year low. It gained 0.1% to 160.63 per dollar in the early Asian session, though remained just a fraction away from Wednesday’s low of 160.88, its weakest level since 1986.

The benchmark 10-year Treasury yield rose 2 basis points to 4.3392% on Thursday, while the two-year yield last stood at 4.7576%.

Read here: Dollar hits 38-year high vs yen

Oil Prices

Crude oil prices fell on Thursday amid surprise build in US stockpiles, fuelling fears about slow demand from the top oil consumer.

Brent crude oil futures fell 0.38% to $84.93 a barrel, while US West Texas Intermediate crude futures lost 0.41% to $80.57 per barrel.

Japan Retail Sales

Japanese retail sales rose 3.0% in May from a year earlier. That was above the median market forecast for a 2.0% rise. The data compares with a revised 2% growth in April.

(With inputs from Reuters)

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