Indian stock market: 10 things that changed for market overnight – Gift Nifty, Maharashtra exit polls to Nvidia earnings

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

Asian markets traded lower, while the US stock market ended mixed overnight amid worries about escalating Russia-Ukraine tensions.

Geopolitical tensions erupted once again after Ukraine fired long-range British Storm Shadow missiles into Russian territory. On Tuesday, Ukraine launched US-made ATACMS missiles into Russia, and Russia announced it had lowered the threshold for nuclear action.

On the domestic front, investors will watch out for the Maharashtra election results 2024, with most exit polls predicting the Bharatiya Janata Party-led ‘Mahayuti’ government to make a comeback.

The Indian stock market was closed on Wednesday, November 20, on account of Maharashtra Election 2024.

On Tuesday, the Indian equity benchmark indices ended higher, snapping a seven-day losing streak.

The Sensex gained 239.37 points, or 0.31%, to close at 77,578.38, while the Nifty 50 settled 64.70 points, or 0.28%, higher at 23,518.50.

“Markets were in a sweet spot in the first half due to the recent oversold position, but most of the gains eroded towards the closing stages as weak European market cues owing to widening of geopolitical tensions between Ukraine and Russia prompted investors to exercise caution. If the ongoing war sees further escalation, risk-off sentiment in equity markets may continue fuelling extended selloffs,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower following a muted trend on Wall Street overnight. Japan’s Nikkei 225 declined 0.67%, and the Topix fell 0.22%. South Korea’s Kospi rose 0.13%, while the Kosdaq fell 0.58%. Hong Kong’s Hang Seng index futures indicated a weaker opening.

Gift Nifty Today

Gift Nifty was trading around 23,575 level, a premium of nearly 40 points from the Nifty futures’ previous close, indicating a mildly positive start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Wednesday, with the tech-heavy Nasdaq closing lower.

The Dow Jones Industrial Average rose 139.53 points, or 0.32%, to 43,408.47, while the S&P 500 gained 0.13 points, or 0.00%, to 5,917.11. The Nasdaq Composite ended 21.32 points, or 0.11%, lower at 18,966.14.

Nvidia stock price fell 0.76% during the normal trading session and further 2.5% after the bell, while Target shares plunged 21.4%. Tesla share price fell 1.15% and Amazon.com stock price eased 0.85%. MicroStrategy shares jumped 10% and MARA Holdings rallied 13.9%.

Nvidia Results

Nvidia stock price fell 0.76% during the normal trading session and further 2.5% after the bell after the company forecast its slowest revenue growth in seven quarters, failing to meet lofty expectations of some investors. Nvidia share price has nearly quadrupled so far this year and is up more than ninefold over the last two years.

US Federal Reserve

Federal Reserve Governor Michelle Bowman called for a cautious approach to any further interest rate cuts, noting that inflation remains a concern and the labor market is strong, Reuters reported.

With inflation still elevated and progress toward the Fed’s 2% goal looking to have stalled, Bowman said, “I would prefer to proceed cautiously in bringing the policy rate down to better assess how far we are from the end point, while recognizing that we have not yet achieved our inflation goal and closely watching the evolution of the labor market.”

Maharashtra Exit Poll Results 2024

A majority of exit polls have predicted a comeback for the Bharatiya Janata Party-led ‘Mahayuti’ government in Maharashtra elections 2024 with a clean sweep, in the 288-member Assembly. The majority mark stands at 145. It should, however, be noted that exit polls often go wrong.

Gautam Adani charged in US with bribery, fraud

Gautam Adani, the billionaire chairman of conglomerate Adani Group, has been indicted in New York over his role in an alleged multibillion-dollar bribery and fraud scheme, Reuters reported. Dollar bond prices for Adani companies fell sharply in early Asia trade after the report.

RBI Bulletin

India’s economic growth is expected to pick up in the current quarter after a slowdown in July-September, the Reserve Bank of India said in its monthly bulletin, citing a rebound in private consumption in the festive period. RBI projected third-quarter gross domestic product growth at 7.6%, faster than an estimated 6.7% in the second quarter. Despite the optimistic growth forecast, the RBI expressed concern about rising core inflation.

Gold Prices

Gold prices traded higher for a fourth consecutive session on safe-haven demand amid the intensifying Russia-Ukraine war. Spot gold traded 0.2% higher at $2,654.50 per ounce, while US gold futures rose 0.2% to $2,657.10.

Dollar

The US dollar stood broadly firm on Thursday. The dollar index held steady at 106.56, up from a one-week nadir hit in the previous session. The euro was nearly flat at $1.054725, while Sterling was up 0.07% at $1.2656. The dollar was down 0.33% at 154.91 yen.

(With inputs from Reuters)

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