Indian stock market: 7 key things that changed for market overnight - Gift Nifty, US PMI to Treasury yields

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open flat with a positive bias on Tuesday amid mixed cues from global peers.

Asian markets traded lower, while the US stock market ended higher overnight led by gains in megacap tech stocks.

The US manufacturing PMI data showed contraction for a third straight month in June, while prices paid dropped to a six-month low in an encouraging sign for the US Federal Reserve’s battle with inflation, Reuters reported. Traders have stuck to their bets of around two interest rate cuts this year, starting from September, LSEG FedWatch showed.

On Monday, the Indian stock market equity indices ended over half a percent higher each led by gains in select financials and IT heavyweights.

The Sensex rallied 443.46 points, or 0.56%, to close at 79,476.19, while the Nifty 50 settled 131.35 points, or 0.55%, higher at 24,141.95.

“Markets reversed the early trend to trade higher as positive Asian and European cues fuelled recovery amid buying in banking, IT and telecom stocks. While there has been no negative news on economic parameters, investors are closely watching developments on the patchy monsoon so far and the upcoming Budget,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Tuesday. Japan’s Nikkei 225 fell 0.41%, while the Topix was flat. South Korea’s Kospi dropped 0.22% and the Kosdaq declined 0.39%. Hong Kong Hang Seng index futures indicated a lower start.

Read here: Asian Stocks Fluctuate as Traders Weigh Trump Win: Markets Wrap

Gift Nifty Today

Gift Nifty was trading around 24,245 level, a premium of nearly 35 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 Monday led by gains in megacap growth stocks that lifted the tech-heavy Nasdaq.

The Dow Jones Industrial Average rose 50.66 points, or 0.13%, to close at 39,169.52, while the S&P 500 gained 14.61 points, or 0.27%, to 5,475.09. The Nasdaq Composite ended 146.70 points, or 0.83%, higher at 17,879.30.

Apple shares rallied 2.9%, Microsoft share price gained 2%, Amazon stock price ended 2.2% higher and Tesla shares spiked 6.1%. Advanced Micro Devices shares declined 2.8% and Arm Holdings fell 2.9%. Chewy shares dropped 6.7%.

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US PMI

US manufacturing contracted for a third straight month in June. The Institute for Supply Management (ISM) said its manufacturing PMI slipped to 48.5 last month from 48.7 in May. Economists polled by Reuters had forecast the PMI climbing to 49.1.

Treasury Yields

US Treasury yields spiked as traders weighed the potential economic implications of the November US election after last week’s presidential debate between Joe Biden and Donald Trump. The benchmark 10-year Treasury yields rose nearly 14 basis points to 4.479% overnight.

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Dollar

US dollar surged to a fresh 38-year peak against the yen on Monday, as Treasury yields rose sharply. The yen traded at 161.55 per dollar in Asia on Tuesday after sinking to 161.72 per dollar on Monday. China's yuan fell to 7.2705 a dollar, its weakest level since November 14, 2023. Euro last bought $1.0735. The dollar index was around 105.85. 

Oil Prices

Crude oil prices traded near a two-month high on escalating tensions in the Middle East.

Brent crude oil gained 0.14% to $86.72 a barrel, while the US West Texas Intermediate (WTI) crude futures rose 0.07% to $83.44.

(With inputs from Reuters)

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