Indian stock market: 10 key things that changed for market overnight - Gift Nifty to hawkish US Fed Chair Jerome Powell

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open on a cautious note on Tuesday following mixed cues from global peers after hawkish comments from the US Federal Reserve Chairman Jerome Powell.

Asian markets traded mixed, while the US stock market ended higher with the S&P 500 and the Dow Jones hitting all-time closing highs.

Traders remain certain that the Fed will cut again at the next policy setting meeting in November, but slashed expectations for a 50 basis-point (bp) reduction to 35.4% from 53.3% a day earlier, according to CME Group's FedWatch Tool.

On Monday, the Indian stock market indices ended more than a percent lower each dragged by weak global cues.

The Sensex crashed 1,272.07 points, or 1.49%, to close at 84,299.78, while the Nifty 50 settled 368.10 points, or 1.41%, lower at 25,810.85.

“In the near term, we expect the market to consolidate after witnessing one side move in the last few weeks. In the coming month, markets will now look for the Q2FY25 result season to provide direction along with global cues. Sector-wise the focus could shift towards IT & Banking space as companies would be releasing their pre-quarterly updates starting this week. Auto Sector will also be in focus as OEMs will announce their monthly sales data,” 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 mixed on Monday after the comments from US Fed Chair Jerome Powell signaled smaller interest rate cuts.

Japan’s Nikkei 225 gained 1.07%, after plunging 4.8% in the previous session, while the Topix rose 0.88%. Markets in South Korea, Hong Kong and mainland China are closed.

Gift Nifty Today

Gift Nifty was trading around 26,000 level, a premium of nearly 10 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.

Wall Street

US stock market ended higher on Monday with the S&P 500 and the Dow Jones posting record high close.

The Dow Jones Industrial Average gained 17.15 points, or 0.04%, to 42,330.15, while the S&P 500 rose 24.31 points, or 0.42%, to 5,762.48. The Nasdaq Composite ended 69.58 points, or 0.38%, higher at 18,189.17.

For the month, the S&P 500 added 2% and a fifth straight month of increase, Reuters reported. For the quarter, the S&P 500 rose 5.5%, the Nasdaq gained 2.6% and the Dow climbed 8.2%.

Jerome Powell

US Federal Reserve Chair Jerome Powell indicated the central bank would likely stick with quarter-percentage-point interest rate cuts moving forward and was not “in a hurry” after new data boosted confidence in ongoing economic growth and consumer spending, Reuters reported.

“This is not a committee that feels like it is in a hurry to cut rates quickly.. We will do what it takes in terms of the speed with which we move,” Powell said, to try to keep inflation progressing towards the Fed's 2% target while maintaining a low unemployment rate.

SEBI Board Meet

Sebi board cleared 17 proposals, including introduction of a new asset class for high-risk profile investors, relaxation of regulatory framework for the passively managed mutual fund schemes, amendments to insider trading rules and relaxing eligibility criteria and compliance requirements for investment advisers and research analysts.

Japan PMI

Japan’s factory activity was subdued in September, a private-sector survey showed. The final au Jibun Bank Japan manufacturing purchasing managers’ index (PMI) dipped to 49.7 in September from 49.8 in August, but edged up from 49.6 reported in the flash reading.

India Fiscal Deficit, CAD

India’s fiscal deficit for April-August was at ₹4.35 lakh crore, 27% of the budgeted estimate for FY25. The latest fiscal deficit figure is lower than ₹6.43 lakh crore reported during the corresponding period of the previous fiscal year.

India's current account deficit (CAD) widened to 1.1% of the gross domestic product (GDP) to $9.7 billion in the April-June quarter of current fiscal (Q1FY25) from a surplus of 1% in the preceding March quarter of FY24.

Core Sector Output

India’s core sector output fell during August, with six of the eight core sectors reporting negative growth during the month. The index of eight core industries fell by 1.8% annually in August compared with a 6.1% increase in July.

Dollar, Treasury Yields

The U.S. dollar gained against major peers on Tuesday. The dollar index added 0.07% to 100.85, after pushing 0.3% higher on Monday. It rose 0.23% to 143.95 yen.

The US two-year Treasury yield rose 8.2 bps to 3.645%, after hitting a two-week peak of 3.672%. The benchmark 10-year yield gained 3.9 bps to 3.790%, while the 30-year yields advanced 2.7 bps to 4.124%.

Gold Prices Today

Gold price held steady after falling nearly 1% in the previous session. Spot gold was flat at $2,635.89 per ounce, while US gold futures eased 0.1% to $2,657.50.

(With inputs from Reuters)

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