Indian stock market: 6 key things that changed for market overnight - Gift Nifty, fall in US tech stocks to strong Yen

Indian stock market: The domestic equity indices, Sensex and Nifty 50, are expected to open higher on Tuesday despite mixed cues from global equity markets.

Asian markets traded mixed, while the US stock market ended mixed overnight dragged down by tech stocks.

Investors watch out for the key retail sales data and the start of the US Federal Reserve’s September policy meeting.

Market expectations on the size of the rate cut the Federal Reserve will announce on Wednesday have been volatile in recent days and are currently pricing in a 59% chance for a 50-basis-point cut, according to CME's FedWatch Tool.

On Monday, the Indian stock market indices ended trading session with modest gains after hitting fresh record highs.

The Sensex gained 97.84 points, or 0.12%, to close at 82,988.78, while the Nifty 50 settled 27.25 points, or 0.11%, higher at 25,383.75.

“Steady buying in key frontline stocks aided benchmark indices to scale fresh highs in a lacklustre trading session, as caution prevailed due to sluggish European markets and lack of cues from Asian indices where Chinese, Japanese & Indonesian were closed for trading. While domestic markets have run up sharply on hopes of a rate cut by the US Fed this week, the quantum of rate cut and the Fed Chief's commentary on inflation and economy going ahead would be keenly focussed by the investors,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed following a mixed session on Wall Street overnight.

Japan’s Nikkei 225 declined 1.24%, while the Topix fell 1.07%. Hong Kong’s Hang Seng index gained 0.56%. South Korea, mainland China and Taiwan markets are closed.

Gift Nifty Today

Gift Nifty was trading around 25,485 level, a premium of nearly 45 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Monday with the Dow Jones closing at a record high.

The Dow Jones Industrial Average rallied 228.30 points, or 0.55%, to 41,622.08, while the S&P 500 rose 7.07 points, or 0.13%, to 5,633.09. The Nasdaq Composite ended 91.85 points, or 0.52%, lower at 17,592.13.

Apple stock price dropped 2.78%, while Nvidia share price fell 1.95%, Broadcom declined 2.19% and Micron Tech stock fell 4.43%. Intel Corp shares jumped 6.36%, while Boeing share price fell 0.78%.

Yen Spikes

The Japanese yen soared as high as 139.58 per dollar on Monday, crossing 140 for the first time since July of 2023. It was last changing hands at 140.40, about 0.16% stronger than Monday's closing level.

Oil Prices

Crude oil prices extended gains on US output concerns.

Brent crude futures for November rose 0.2% to $72.91 a barrel, while US crude futures for October climbed 0.5% to $70.43 a barrel.

US Treasury Yields

The US Treasury yields rose, with the benchmark 10-year bond yields gaining 21 bps to 3.62% and the yield on 2-year notes rising 18 bps to 3.55%.

(With inputs from Reuters)

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