Indian stock market: 10 key things that changed for market overnight - Gift Nifty, US Fed minutes to payrolls data

Indian stock market: The Indian equity market indices, Sensex and Nifty 50, are expected to open higher on Thursday following an upbeat momentum in the global markets.

Asian markets traded higher, while the US stock market ended in the green overnight after the US Federal Reserve released minutes from its July monetary policy meeting, with traders now awaiting Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium for insights on rate outlook.

The Fed meeting minutes suggest the Fed officials were already strongly leaning toward a rate cut at the meeting scheduled for September. US payrolls data further bolstered hopes of the rate cut.

Traders are currently pricing in a 100% chance of a rate cut next month, per the CME Group’s FedWatch tool, but they are divided when it comes to how large the reduction will be

On Wednesday, the Indian stock market benchmark indices ended higher led by fag-end buying in select heavyweights amid cautious global sentiment.

The Sensex gained 102.44 points, or 0.13%, to close at 80,905.30, while the Nifty 50 settled 71.35 points, or 0.29%, higher at 24,770.20.

“Investors are taking a cautious approach and are buying selectively ahead of the US FOMC minutes outcome. The Fed chair’s speech at the Jackson Hole conference on Friday will also be eyed by investors as any hint of a rate cut could fuel buying support,” 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 Thursday tracking economic data in the region and overnight gains on Wall Street.

Japan’s Nikkei 225 gained 0.79%, while the Topix rose 0.29 South Korea’s Kospi added 0.23%, but the Kosdaq fell 0.25%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 24,883 level, a premium of nearly 87 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 Wednesday after the minutes from the most recent meeting of the Federal Reserve cemented expectations for a September rate cut.

The Dow Jones Industrial Average gained 55.52 points, or 0.14%, to 40,890.49, while the S&P 500 rose 23.73 points, or 0.42%, to 5,620.85. The Nasdaq Composite ended 102.05 points, or 0.57%, higher at 17,918.99.

Target shares surged 11.2%, TJX Cos stock rallied 6.1%, while Macy's share price plunged 12.9%. JD.com shares dropped 4.2% and Ford Motor stock rose 1.6%.

US Fed Minutes

The Federal Reserve appears to be very much on track for an interest rate cut in September after a “vast majority” of officials said such an action was likely, according to the minutes of the US central bank’s July 30-31 meeting, Reuters reported.

US Payrolls Data

US employers added far fewer jobs than originally reported in the year through March, the Labor Department said.

The department’s estimate for total payroll employment for the period from April 2023 to March 2024 was lowered by 818,000. The revision represented a total downward change of about 0.5% and means that monthly job gains during the period averaged roughly 174,000, compared to the previously reported figure of 242,000.

Japan PMI

Japan’s factory activity shrank in August amid subdued demand. The au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) rose to 49.5 in August from 49.1 in July.

Gold Prices

Gold prices traded near a record high after US Fed meeting minutes and a downward revision of US payrolls reinforced expectations a September rate cut

Spot gold was flat at $2,512 per ounce, trading below a record high of $2,531.60 hit on Tuesday. US gold futures rose 0.05% to $2,548.80

Dollar

The dollar traded near the lowest in more than a year against the euro and sterling. The dollar index, which measures the currency against the euro, sterling, yen and three other major peers, was little changed at 101.14. It dipped to 100.92 overnight for the first time this year.

US Treasury Yields

US Treasury yields fell as a big downward revision of US payrolls raised prospects for Fed rate cuts in September.

The benchmark 10-year yield dipped 2.6 bps to 3.791% after falling to a two-week low of 3.761%. US 20- and 30-year yields also dropped to their lowest in two weeks and were last down at 4.166% and 4.065, respectively.

Oil Prices

Crude oil prices traded lower, with the benchmark Brent oil falling below $80 level.

Brent crude oil fell 0.13% to $75.95 a barrel, while the US West Texas Intermediate (WTI) crude futures dropped 0.22% to $71.77.

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.