Indian stock market: 8 key things that changed for market overnight - Gift Nifty, US job openings data to oil prices

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

Asian markets traded higher, while US stock indices ended with gains overnight amid rising hopes of interest rate cuts by the Fed this year.

US Federal Reserve Chair Jerome Powell struck a moderately dovish tone in his comments, suggesting that the central bank is more than likely to start its easing cycle later this year.

On Tuesday, the Indian stock market benchmark indices ended with mild losses after hitting fresh record highs during the session.

The Sensex eased 34.74 points, or 0.04%, to close at 79,441.45, while the Nifty 50 settled 18.10 points, or 0.07%, lower at 24,123.85.

“Strong GST collections in June, manufacturing PMI index bouncing back to 58.3 in June, and expectation of healthy Q1 earnings has a positive impact on the market. We expect this ongoing momentum to continue with Nifty consolidating at a higher zone,” 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 Wednesday following overnight gains on Wall Street and amid economic data releases in the region.

Japan’s Nikkei 225 rose 0.84% to above the 40,000 level, while the Topix rose 0.08%. South Korea’s Kospi gained 0.26% and the Kosdaq Index added 0.5%. Hong Kong Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 24,340 level, a premium of nearly 140 points from the Nifty futures’ previous close, indicating a strong start for the Indian stock market indices.

Wall Street

US stock market indexes ended higher on Tuesday led by gains in megacap growth stocks and Tesla shares.

The Dow Jones Industrial Average rallied 162.33 points, or 0.41%, to close at 39,331.85, while the S&P 500 rose 33.92 points, or 0.62%, to 5,509.01. The Nasdaq Composite ended 149.46 points, or 0.84%, higher at 18,028.76.

Tesla shares jumped 10.2%, Apple shares gained 1.6%, while Amazon.com and Alphabet also rose. Nvidia share price declined 1.3%, while Paramount Global shares rallied 5.7%.

Jerome Powell

The US central bank still needs more data before cutting interest rates to ensure that recent weaker inflation readings give a true picture of what is happening to underlying price pressures, Federal Reserve Chair Jerome Powell said.

US Job Openings

US job openings increased in May after posting outsized declines in the prior two months. Job openings rose 221,000 to 8.140 million on the last day of May, the Job Openings and Labor Turnover Survey, or JOLTS report, showed. Economists polled by Reuters had forecast 7.910 million job openings in May.

Japan PMI

Japanese service activity contracted for the first time in nearly two years in June. The final au Jibun Bank Service purchasing managers’ index (PMI) slipped to 49.4 in June from 53.8 in May, snapping 21 straight months of expansion, the S&P Global Market Intelligence survey showed, Reuters reported. The composite PMI fell to 49.7 in June from 52.6 in May, the first time the index has slipped below the 50.0 in seven months.

Dollar, Treasury Yields

US dollar fell, while the Treasury yields dropped amid increased prospects of interest rate cuts by the US Federal Reserve.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.15% to 105.68. The yield on benchmark US 10-year notes fell 4.9 basis points to 4.43%.

Oil Prices

Crude oil prices steadied around a two-month high amid signs of a significant drawdown in US crude stockpiles.

Brent crude oil rose 0.27% to $86.47 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.23% to $83.00.

(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.