Indian stock market: 8 key things that changed for market overnight – Gift Nifty, Wall Street rally to oil prices

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are likely to open higher on Wednesday, following gains in global markets and ahead of the announcement of the Reserve Bank of India’s monetary policy.

Asian markets traded higher, while the US stock market rallied overnight led by gains in technology stocks.

Investors will watch out for the RBI’s monetary policy announcement today. The RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) is widely expected to keep the repo rate unchanged, but may change its policy stance.

On Tuesday, the Indian stock market bounced back and ended with strong gains after six sessions of relentless sell-off.

The Sensex rallied 584.81 points, or 0.72%, to close at 81,634.81, while the Nifty 50 settled 217.40 points, or 0.88%, higher at 25,013.15.

“Markets reversed its 6-session losing streak due to short covering by investors in banking, telecom, auto and realty stocks. The recovery was seen despite weak cues from Asian and European markets, although the short to medium term domestic market outlook remains hazy amid FPI sell offs and lingering West Asia conflict,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher following overnight rally on Wall Street.

Japan’s Nikkei 225 gained 1%, while the Topix rose 0.5%. Hong Kong’s Hang Seng index futures indicated a higher opening. South Korea’s markets are closed for a public holiday.

Gift Nifty Today

Gift Nifty was trading around 25,160 level, a premium of nearly 28 points from the Nifty futures’ previous close, indicating a mildly positive start for the Indian stock market indices.

Wall Street

US stock market indices ended higher on Tuesday led by buying in technology stocks.

The Dow Jones Industrial Average rose 126.13 points, or 0.30%, to 42,080.37, while the S&P 500 gained 55.19 points, or 0.97%, to 5,751.13 points. The Nasdaq Composite ended 259.01 points, or 1.45%, higher at 18,182.92.

Nvidia stock price jumped 4.1%, while Apple, Tesla and Meta Platforms shares rose between 1.4% and 1.8%. Palantir Technologies stock price rallied 6.6% and Palo Alto Networks stock price surged 5.1%. PepsiCo shares gained 1.9%, while shares of Alibaba Group, JD.com and PDD Holdings slumped between 5.4% and 7.5%.

Indian bonds inclusion in FTSE Russell indexes

Global index provider FTSE Russell said it would include India’s sovereign bonds in its Emerging Markets Government Bond Index (EMGBI) starting September 2025, potentially drawing billions of dollars into local bonds. Indian securities will be a part of FTSE’s EMGBI and would represent 9.35% of the index on a market-value weighted basis, FTSE said.

US Federal Reserve

US Federal Reserve Bank of Boston President Susan Collins said that with inflation trends growing weaker it is very probable that the U.S. central bank can deliver more interest rate cuts, Reuters reported. “Further adjustments of policy will likely be needed,” Collins said in the text of a speech.

New Zealand Rate Cut

The Reserve Bank of New Zealand slashed the cash rate by 50 basis points to 4.75% and said it assesses that annual consumer price inflation is within its 1% to 3% inflation target range.

US Trade Deficit

The US trade deficit narrowed sharply in August. The trade gap contracted 10.8% to $70.4 billion from a revised $78.9 billion in July. Economists polled by Reuters had forecast the trade deficit would narrow to $70.6 billion from the previously reported $78.8 billion in July.

Oil Prices

Crude oil prices rose after tumbling the most in more than a year in the previous session.

Brent crude oil rose 0.58% to $77.63 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.58% to $74.00.

(With inputs from Reuters)

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