Indian stock market: 10 key things that changed for market overnight - Gift Nifty, fall in Dow Jones, Infosys Q1 results

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note Friday tracking losses in global markets.

Asian markets traded lower, while the US stock market ended sharply in the red overnight dragged by losses in tech stocks.

On Thursday, the Indian stock market benchmark indices ended with healthy gains, led by a rally in IT stocks.

The Sensex surged 626.91 points, or 0.78%, to close at 81,343.46, while the Nifty 50 settled 187.85 points, or 0.76%, higher at 24,800.85.

“SEBI’s proposal for a new asset class between mutual funds and PMS with a Rs10 lakh ticket size, continued FII buying and a rise in India’s GDP forecast by both IMF and ADB supported the market as Nifty 50 made a smart recovery. We expect this ongoing momentum to continue with stock-specific action. All eyes would be on the budget next week which could set the tone for the next leg of the market rally,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Friday tracking overnight losses on Wall Street.

Japan’s Nikkei 225 fell 0.16%, while the Topix declined 0.28%. South Korea’s Kospi plunged 0.93%, and the Kosdaq lost 0.29%. Hong Kong’s Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 24,840 level, a premium of nearly 30 points from the Nifty futures’ previous close, indicating a mildly positive start for the Indian stock market indices.

Wall Street

US stock market ended sharply lower on Thursday dragged by selling in megacap growth stocks, with the blue-chip Dow falling the most.

The Dow Jones Industrial Average plunged 533.06 points, or 1.29%, to 40,665.02, while the S&P 500 declined 43.68 points, or 0.78%, to 5,544.59. The Nasdaq Composite closed 125.70 points, or 0.7%, lower at 17,871.22.

Domino’s Pizza shares tumbled 13.6%, while homebuilder D.R. Horton shares price jumped 10.1%. Warner Bros Discovery share gained 2.4%.

US Jobless Claims

The number of Americans filing new applications for unemployment benefits rose more than expected last week. Initial claims for state unemployment benefits increased 20,000 to a seasonally adjusted 243,000 for the week ended July 13. Economists polled by Reuters had forecast 230,000 claims for the latest week.

Infosys Q1 Results

Infosys reported a consolidated net profit of ₹6,368 crore in the quarter ended June, a drop of 20% from ₹7,969 crore in the March quarter. Infosys Q1FY25 revenue increased 3.7% to ₹39,315 crore from ₹37,923 crore, QoQ, while its sequential revenue growth in USD terms was 3.4% at $4,717 million. EBIT rose 8.8% to ₹8,288 crore, while EBIT margin improved by 100 bps QoQ to 21.7%. Infosys raised its revenue growth guidance for FY25 in the range of 3% to 4%, while FY25 margin guidance was retained at 20% to 22%.

European Central Bank Policy

The European Central Bank kept interest rates unchanged at 4.25% but said September’s meeting was “wide open” as it downgraded its view of the euro zone’s economic prospects and predicted that inflation would keep on falling, Reuters reported. The ECB had cut rates from record highs last month.

Japan Inflation

Japan’s inflation was slightly higher in June, with prices rising 2.6% on-year compared with 2.5% in May. But the core Consumer Price Index (CPI) reading, which excludes volatile fresh food prices, was still softer than market expectations of a 2.7% increase.

RBI Bulletin

The Reserve Bank of India (RBI) said that the economy’s natural rate of interest has increased since the pandemic and will rise further, driven by the growth of potential output. It estimated the natural rate was 1.4-1.9% in Q4FY24, higher than the 0.8-1.0% in the Q3FY22, the last time it made an estimate, the central bank said in its monthly bulletin.

Dollar, Treasury Yields

US Treasury yields rose and the dollar gained on Thursday.

The dollar index, which measures the greenback against a basket of currencies, gained 0.49% at 104.18 a day after touching a four-month low of 103.64, and was on track for its biggest daily percentage gain since June 13.

US 10-year treasury yields rose 4.4 basis points to 4.19%, while the interest rate sensitive two-year yields were up 3.4 bps at 4.463%. The yield curve between two-year and 10-year notes steepened one basis point on the day to minus 27 basis points.

Oil Prices

Crude oil prices fell on Friday, setting up for a second weekly decline. Brent crude prices fell 0.6% to $84.50 a barrel, while US West Texas Intermediate crude futures declined 0.9% to $82.10 a barrel.

(With inputs from Reuters)

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