Indian stock market: 10 key things that changed for market over weekend - Gift Nifty, China stimulus to FII selling

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

Asian markets traded mostly higher, while the US stock market ended with strong gains last week as the S&P 500 and the Dow Jones witnessed record closing highs.

Traders see roughly 87% probability the US Federal Reserve would cut interest rates by 25 basis points at its November meeting, and a 13% chance it will leave rates unchanged, according to CME’s FedWatch tool.

On Friday, the Indian stock market indices ended lower, weighed down by auto and banking stocks.

The Sensex dropped 230.05 points, or 0.28%, to close at 81,381.36, while the Nifty 50 settled 34.20 points, or 0.14%, lower at 24,964.25.

“Nifty 50 consolidated and traded sideways amid relentless selling by FIIs and the absence of any major triggers. Overall, we expect markets to consolidate at higher zones and take cues from global factors & result season,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

This week, investors will closely monitor key market triggers such as the first set of Q2 results, developments in the Israel-Iran war, flow of foreign funds, trends in crude oil prices, domestic and global macroeconomic data and other key global cues.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Monday ahead of key economic data releases this week from the region.

Japan’s market was shut for a holiday. South Korea’s Kospi rose 0.63%, while the Kosdaq index declined 0.43%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 25,100 level, a premium of nearly 50 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 Friday, with the S&P 500 and the Dow Jones scoring record closing highs.

The Dow Jones Industrial Average rallied 409.74 points, or 0.97%, to 42,863.86, while the S&P 500 gained 34.98 points, or 0.61%, to 5,815.03. The Nasdaq Composite ended 60.89 points, or 0.33%, higher at 18,342.94.

Tesla stock price slumped 8.78%, while JPMorgan Chase shares surged 4.4%. Wells Fargo stock price rallied 5.6% and BlackRock stock gained 3.6%.

US Producer Price Index

US producer prices were unchanged in September, pointing to a still-favorable inflation outlook, Reuters reported. The unchanged reading in the producer price index for final demand last month followed an unrevised 0.2% gain in August. Economists polled by Reuters had forecast the PPI edging up 0.1%. In the 12 months through September, the PPI increased 1.8% after climbing 1.9% in August.

Consumer sentiment index

US consumer sentiment slipped in October amid lingering frustration over high prices. The University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 68.9 this month, compared to a final reading of 70.1 in September. Economists polled by Reuters had forecast a preliminary reading of 70.8.

China Stimulus

China pledged to “significantly increase” debt to revive its sputtering economy, Reuters reported. Finance Minister Lan Foan said Beijing will help local governments tackle their debt problems, offer subsidies to people with low incomes, support the property market and replenish state banks’ capital, among other measures.

China Inflation

China’s consumer inflation rate fell in September, while producer price deflation deepened. The consumer price index (CPI) rose 0.4% from a year earlier last month, the slowest in three months, against a 0.6% rise in August, missing a 0.6% increase forecast in a Reuters poll of economists.

The producer price index (PPI) fell at the fastest pace in six months, down 2.8% YoY in September, versus a 1.8% decline the previous month and below an expected 2.5% decline.

Oil Prices

Oil prices fell after disappointing Chinese inflation data. Brent crude futures declined 1.44% to $77.90 per barrel, while US West Texas Intermediate crude futures fell 1.43% to $74.48 per barrel.

Gold Rate Today

Gold prices fell as the US dollar strengthened. Spot gold fell 0.4% to $2,646.75 per ounce after rising 1% in the previous session, while US gold futures declined 0.5% to $2,663.90.

FII Selling

On Friday, Foreign institutional investors (FIIs) net sold Indian shares worth ₹4,162.66 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹3,730.87 crore, as per provisional data available on the exchanges. FIIs have sold Indian equities worth ₹58,394.56 crore in October so far.

(With inputs from Reuters)

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