Indian stock market: 8 key things that changed for market overnight – Gift Nifty, new RBI Governor to Nvidia stock price

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note Tuesday amid mixed trends in global markets.

Asian markets traded higher, while the US stock market ended lower overnight amid fall in technology stocks weighed down by Nvidia shares.

Investors await the key US inflation data later this week, with the US Federal Reserve widely expected to cut rates by 25 basis points at the conclusion of its December 17-18 meeting.

On the domestic front, Revenue Secretary Sanjay Malhotra has been appointed as the next Governor of the Reserve Bank of India (RBI).

On Monday, the Indian stock market benchmark indices ended lower, dragged by consumer stocks, amid weak global cues.

The Sensex declined 200.66 points, or 0.25%, to close at 81,508.46, while the Nifty 50 settled 58.80 points, or 0.24%, lower at 24,619.00.

“Markets witnessed a range-bound session and mostly languished in negative territory due to lack of investors’ enthusiasm after last week’s rally. All eyes are on this week’s IIP and inflation numbers, which would be key given the RBI’s reluctance to cut rates on the back of higher inflation concerns going ahead,” 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 Tuesday as investors assessed China’s announcement of “more proactive” fiscal measures and “moderately” looser monetary policy next year.

Japan’s Nikkei 225 gained 0.3%, while the Topix rose 0.35%. South Korea’s Kospi rallied 1.9% and the Kosdaq jumped 4%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 24,720 level, a premium of nearly 25 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market indices ended lower on Monday weighed down by tech stocks amid fall in Nvidia stock price and ahead of the release of crucial inflation data later this week.

The Dow Jones Industrial Average declined 240.59 points, or 0.54%, to 44,401.93, while the S&P 500 fell 37.42 points, or 0.61%, to 6,052.85. The Nasdaq Composite ended 123.08 points, or 0.62%, lower at 19,736.69.

Nvidia share price dropped 2.5%, Advanced Micro Devices shares plunged 5.7%, Comcast share price tanked 9.5%, while Hershey stock price surged 10.9% and Mondelez shares fell 2.3%.

Interpublic Group shares gained 3.6% and Omnicom shares cracked 10.3%. Alibaba Group Holding Ltd. and PDD Holdings Inc. shares rose more than 7% each in New York trading.

Nvidia Stock

Nvidia shares closed 2.5% lower on Monday after China said it has launched an investigation into the AI major over suspected violations of the country’s anti-monopoly law.

RBI Governor

The government has appointed Revenue Secretary Sanjay Malhotra as the next Governor of the Reserve Bank of India for a period of three years. He will take over the top post later after the six-year term of Shaktikanta Das ends on December 10.

US Inflation Expectations

US consumers were bracing last month for higher levels of inflation in coming years, the New York Federal Reserve reported. Respondents to the regional Fed bank’s survey of consumer expectations in November see inflation a year from now at 3%, versus the 2.9% expected in October, while inflation in three years is seen at 2.6%, compared to 2.5% in the previous month, Reuters reported.

Gold Prices

Gold prices were flat on Tuesday near a two-week high hit in the previous session, after China’s central bank added bullion to its reserves following a six-month hiatus and concerns about the Middle East bolstered haven demand.

Spot gold held its ground at $2,660.82 per ounce, while US gold futures were steady at $2,683.60.

US Treasury Yields

US Treasury yields rose ahead of key inflation data due this week. Benchmark 10-year yields were up 4.2 basis points at 4.195%, while the interest rate-sensitive two-year yields rose 2.6 basis points to 4.124%.

(With inputs from Reuters)

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