Indian stock market: 7 key things that changed for market overnight - Gift Nifty, chip stocks selloff to oil prices

Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday following weakness in global markets.

Asian markets declined, while the US stock market ended lower overnight amid heavy selloff in chip stocks and energy sector stocks.

Investors will now focus on the key US retail sales data for September, industrial production figures and weekly jobless claims data, all due on Thursday. Traders see a 97.2% chance of a 25 basis point cut in November and a 2.8% probability of a pause by the US Federal Reserve.

On Tuesday, the Indian stock market indices ended lower dragged by losses in index heavyweights.

The Sensex declined 152.93 points, or 0.19%, to close at 81,820.12, while the Nifty 50 settled 70.60 points, or 0.28%, lower at 25,057.35.

“Markets continue to remain volatile as key indices ended in red after Monday's upsurge, as fear of global economic uncertainty continues to weigh amid the ongoing West Asia conflict and the sharp drop in crude oil prices which is indicating demand slowdown. Another factor for the sluggishness could be investors' focus in the primary market as investors, including domestic and foreign, must be eyeing the ongoing Hyundai Motor India IPO,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower tracking overnight losses on Wall Street, with Japan’s Nikkei leading the decline.

Japan’s Nikkei 225 dropped 1.85%, while the Topix fell 1.13%. South Korea’s Kospi declined 1.22% and the Kosdaq fell 0.93%. Hong Kong’s Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 25,045 level, a discount of nearly 80 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market indices ended lower on Tuesday, with the technology-heavy Nasdaq falling 1% as chip stocks tumbled, while the energy sector fell 3%.

The Dow Jones Industrial Average declined 324.80 points, or 0.75%, to 42,740.42, while the S&P 500 dropped 44.59 points, or 0.76%, to 5,815.26. The Nasdaq Composite ended 187.10 points, or 1.01%, lower at 18,315.59.

Nvidia stock price fell 4.7%, wiping out about $158 billion from its market cap, while Apple shares gained 1.1%. AMD, Intel, Arm, Broadcom and Micron, fell between 3.2% and 5%.

UnitedHealth shares slumped 8%, while ASML’s US-listed shares tumbled 16%. Bank of America share price rose 0.5%, while Charles Schwab shares rallied 6% and Citigroup stock price plunged 5%. Walgreens Boots Alliance shares surged 15.8%.

US Federal Reserve

US Federal Reserve Bank of San Francisco President Mary Daly said the central bank remains on track for more rate cuts this year as long as data meets expectations, Reuters reported. Atlanta Fed President Raphael Bostic said he pencilled in just one more 25 bp rate reduction this year when he updated his projections for last month’s US central bank meeting.

Japan Core Machinery Orders

Japan’s core machinery orders fell 1.9% in August from the previous month, down for two straight months. That compared with a 0.1% decline expected by economists in a Reuters poll. On a year-on-year basis, core orders fell 3.4%, versus a forecast for 3.6% growth.

Oil Prices

Crude oil prices traded higher after slumping by more than 4% on Tuesday.

Brent crude oil rose 0.35% to $74.51 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.41% to $70.87.

Gold Prices

Gold prices were steady ahead of key US economic data. Spot gold was flat at $2,660.36 per ounce, while US gold futures fell 0.1% to $2,676.50.

(With inputs from Reuters)

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