Indian stock market: 8 key things that changed for market overnight - Gift Nifty, US Presidential debate to oil prices

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

Asian markets traded lower, while the US stock market ended mixed overnight on economic concerns.

Investors await the US Consumer Price Index (CPI) data, due later in day, along with the Producer Price Index reading and initial jobless claims on Thursday.

Markets are currently pricing in 66% chance of the US Federal Reserve cutting rates by 25 basis points, while 34% chance is ascribed for a 50 bps cut when the Fed delivers its decision on September 18, CME FedWatch tool showed.

On Tuesday, the Indian stock market indices ended higher led by positive global cues, with the benchmark Nifty 50 reclaiming 25,000 level.

The Sensex gained 361.75 points, or 0.44%, to close at 81,921.29, while the Nifty 50 settled 104.70 points, or 0.42%, higher at 25,041.10.

“Nifty closing above the psychological 25,000 mark shows that investors continue to be upbeat about the country’s strong growth prospects despite global recessionary concerns. Sliding crude oil prices remains a worry as falling demand increases risks of global slowdown,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Wednesday ahead of the US inflation data. MSCI's broadest index of Asia-Pacific shares outside Japan 0.08% lower.

Japan’s Nikkei 225 declined 0.7% and the Topix fell 0.86%. South Korea’s Kospi dropped 0.20%, while the Kosdaq rose 1.61%. Hong Kong Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 25,087 level, a discount of nearly 10 points from the Nifty futures’ previous close, indicating a flat-to-negative start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Tuesday dragged by selling in banking and energy stocks.

The Dow Jones Industrial Average declined 92.63 points, or 0.23%, to 40,736.96, while the S&P 500 rose 24.47 points, or 0.45%, to 5,495.52. The Nasdaq Composite ended 141.28 points, or 0.84%, higher at 17,025.88.

JPMorgan Chase shares dropped 5.2%, Goldman Sachs share price fell 4.3% and Ally Financial stock sank 17.6%. Hewlett Packard Enterprise stock price plunged 8.5%, while Oracle share price rallied 11.4%.

US Presidential Debate

US Republican Donald Trump and Democratic Vice President Kamala Harris began their first presidential debate on Tuesday, a key moment in the closely fought election, with clashing over the economy in the opening moments of the debate.

OPEC

OPEC cut its forecast for global oil demand growth in 2024 and also trimmed its expectation for next year, Reuters reported. OPEC in a monthly report said world oil demand will rise by 2.03 million barrels per day (bpd) in 2024, down from growth of 2.11 million bpd expected last month.

Crude Oil Prices

Crude oil prices stabilized after tumbling to the lowest level in three years. Brent crude futures rose 0.52% to $69.55 a barrel, after sliding by more than 3% on Tuesday, while US West Texas Intermediate (WTI) crude gained 0.61% to $66.15 a barrel.

Dollar

The dollar hung close to a three-week top versus the euro and the yen hovered near a five-week peak, Reuters reported. The dollar index - which measures the currency against three rivals and three other major peers - was steady at 101.66 after rising to a one-week top at 101.77 overnight.

Gold Rate Today

Gold prices were steady ahead of US inflation data for hints on the depth of interest rate cuts expected from the Federal Reserve next week. Spot gold edged 0.1% to $2,517.80 per ounce, while US gold futures rose 0.1% to $2,546.50.

(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.