Indian stock market: 7 key things that changed for market overnight – Gift Nifty, US inflation to Nasdaq at record high

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a muted note Thursday following mixed cues from global peers.

Asian markets traded higher, while the US stock market ended mixed, with the Nasdaq crossing the 20,000-point milestone for the first time.

Data showed US inflation in November increased by the most in seven months, though broadly in line with market expectations, boosting hopes of an interest rate cut by the US Federal Reserve.

Markets are pricing in more than a 96% chance the Fed will cut rates by 25 basis points next week, up from an 86% chance before the data, according to CME’s FedWatch Tool, Reuters reported.

On Wednesday, the Indian stock market benchmark indices snapped its three-day losing run to end in the green with mild gains.

The Sensex rose 16.09 points, or 0.02%, to close at 81,526.14, while the Nifty 50 settled 31.75 points, or 0.13%, higher at 24,641.80.

“Investors will watch out for India’s November CPI, industrial production data and US November PPI to be declared today. We expect markets to continue to trade in a broad range with a positive bias backed by intermittent FPI inflows and optimistic news flows around government spending,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher tracking overnight gains in US tech stocks.

Japan’s Nikkei 225 rose 1.7%, while the Topix gained 1.3%. South Korea’s Kospi index rallied 1%, while the Kosdaq rose 1.2%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 24,750 level, a premium of nearly 15 points from the Nifty futures’ previous close, indicating a muted start for the Indian stock market indices.

Wall Street

US stock market ended mixed after the inflation data boosted Fed rate cut hopes. A rally in tech stocks lifted the Nasdaq above the 20,000-point milestone for the first time.

The Dow Jones Industrial Average declined 99.27 points, or 0.22%, to 44,148.56, while the S&P 500 rallied 49.28 points, or 0.82%, to 6,084.19. The Nasdaq Composite closed 347.65 points, or 1.77%, higher at 20,034.89.

Tesla share price jumped nearly 6% to a record high, Nvidia, Alphabet and Amazon shares gained between 1.2% and 5.5%, while Apple stock price eased 0.5%. Cigna stock price dropped 5.5%, CVS Health Corp share price plunged 6.1%, and UnitedHealth Group shares lost 5.6%. GameStop shares rallied 7.5% and Broadcom share price spiked 6.6%.

US Inflation

US consumer prices increased by the most in seven months in November. The consumer price index rose 0.3% last month, the largest gain since April after advancing 0.2% for four straight months. In the 12 months through November, the CPI climbed 2.7% after increasing 2.6% in October. Economists polled by Reuters had forecast the CPI rising 0.3% and advancing 2.7% year-on-year.

US Treasury yields

US Treasury yields rose as the Treasury Department sold long-dated supply and data showed a widening US budget deficit, Reuters reported. The benchmark 10-year note yields were up 5 basis points on the day at 4.271%, while the two-year note yields rose 1 basis points to 4.159%.

Dollar

The US dollar hit a two-week high after the inflation data. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.31% to 106.68, with the euro down 0.31% at $1.0493.

Gold Prices

Gold prices held a three-day advance after the US inflation report reaffirmed rate cut expectations. Gold prices were up 0.2% at $2,700.52.

(With inputs from Reuters)

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