Indian stock market: 7 key things that changed for market overnight – Gift Nifty, China interest rates to oil prices

Indian stock market: The domestic equity market indices, Sensex and Nifty 50 are expected to open higher on Thursday following gains in global markets.

Asian markets were trading in the green, with several markets closed for holidays, while the US stock market ended higher on Tuesday.

Indian stock market and major global markets were shut on Wednesday on account of Christmas.

On Tuesday, the Indian stock market benchmark indices ended choppy session with minor losses.

The Sensex fell 67.30 points, or 0.09%, to close at 78,472.87, while the Nifty 50 settled 25.80 points, or 0.11%, lower at 23,727.65.

“The Nifty index saw a lackluster start to the much-anticipated ‘Santa Claus Rally Period,’ with the index closing at 23,728, down 26 points. The sluggish session was attributed to persistent selling by FIIs, concerns over India’s slowing economic growth, and a weakening Indian rupee, which hit a record low of Rs. 85.13 against the dollar. These factors weighed on investor sentiment, keeping the market directionless and choppy throughout the day. Our earlier call suggested a low-volume trading session, and that prediction held true as Nifty traded in a volatile range,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Thursday, with several markets remaining shut for Boxing Day holiday.

Japan’s Nikkei 225 gained 0.37%, while the Topix rose 0.49%. South Korea’s Kospi added 0.12% while the Kosdaq rallied 0.48%.

In Asia-Pacific, stock markets in Australia, New Zealand and Hong Kong are closed for the Boxing Day holiday on December 26. Indonesian markets are shut for Christmas holiday today.

Gift Nifty Today

Gift Nifty was trading around 23,800 level, a premium of nearly 30 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended higher on Tuesday bolstered by gains in megacap and growth stocks in a truncated Christmas Eve session.

The Dow Jones Industrial Average rallied 390.08 points, or 0.91%, to 43,297.03, while the S&P 500 surged 65.97 points, or 1.10%, to 6,040.04 points. The Nasdaq Composite closed 266.24 points, or 1.35%, higher at 20,031.13.

Tesla shares jumped 7.4%, Broadcom stock price rose 3.2% and Nvidia share price gained 0.4%, while Arm Holdings rallied 3.9%.

Microstrategy, Riot Platforms, and MARA Holdings all climbed between 4.7% and 8.1%, as the price of bitcoin advanced. NeueHealth shares soared 75%.

Bank of Japan Governor

The Bank of Japan expects the economy to move closer to sustainably achieving the central bank’s 2% inflation target next year, Governor Kazuo Ueda said on Wednesday, suggesting the timing of its next interest rate increase was nearing, Reuters reported. But he warned of the need to scrutinise the fallout from “high uncertainties” surrounding overseas economies, especially the economic policies of the incoming US administration of President-elect Donald Trump.

People’s Bank of China

China kept interest rates steady and drained the most cash since 2014 with a one-year policy tool. The People’s Bank of China held the interest rate on the one-year medium-term lending facility steady at 2%. The authorities also withdrew a net 1.15 trillion yuan ($158 billion) from the financial system with the tool, the most since 2014.

Gold Prices

Gold prices traded higher in holiday-thinned trade. Spot gold rate rose 0.2% to $2,619.59 per ounce, while US gold futures steadied at $2,637.10. Bullion price has surged approximately 27% so far this year.

Oil Prices

Crude oil prices traded higher after an advance on Tuesday, with China’s stimulus measures and US stockpiles outlook in focus. Brent crude oil rose 0.22% to $73.74 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.33% to $70.33.

(With inputs from Agencies)

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