Indian stock market: 7 key things that changed for market overnight - Gift Nifty, US tech stocks sell-off to oil prices

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open lower on Wednesday tracking a sharp sell-off in global markets.

Asian markets traded with steep losses, while the US stock market ended sharply lower overnight amid a sell-off in technology stocks and as weak economic data sparked recession fears.

Markets are pricing in a 63% chance of a 25 basis points (bps) in the US Federal Reserve’s meeting on September 17 and 18, with a 37% probability of a 50-bps cut, CME FedWatch tool showed. Some 100 bps of cuts are priced in all for the year.

On Tuesday, the Indian stock market indices ended flat amid lack of fresh triggers and as weak global cues kept investors cautious.

The Sensex eased 4.40 points, or 0.01%, to close at 82,555.44, while the Nifty ended flat at 25,279.85.

“Markets consolidated at a higher zone after making a fresh high above 25300 levels in the previous session. Although intermittent volatility cannot be ruled out, we expect the market to see a gradual up move with sectorial rotation, supported by rising hope of the US rate cut and FIIs turning buyers,” 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 sharply lower on Wednesday following a sell-off on Wall Street overnight as tech stocks bled.

Japan’s Nikkei 225 plunged 4.01%, while the Topix tanked 2.74%. South Korea’s Kospi dropped 2.61% and Kosdaq declined 2.94%. Hong Kong’s Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 25,185 level, a discount of nearly 160 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market slumped on Tuesday, with the three benchmark indices recording their biggest daily percentage declines since early August.

The Dow Jones Industrial Average plunged 626.15 points, or 1.51%, to 40,936.93, while the S&P 500 index tanked 119.47 points, or 2.12%, to 5,528.93. The Nasdaq Composite ended 577.33 points, or 3.26%, lower at 17,136.30.

Nvidia stock price dropped nearly 10%, Alphabet shares declined 3.6%, Apple stock dropped 2.7% and Microsoft share price fell 1.8%. Intel shares tanked 8.8%, Tesla stock price slid 1.6% and Boeing shares plunged 7.3%.

US Manufacturing PMI

US manufacturing contracted at a moderate pace in August. The Institute for Supply Management (ISM) said its manufacturing PMI rose to 47.2 last month from 46.8 in July, which was the lowest reading since November. The PMI remained below the 50 threshold for the fifth straight month.

Nvidia stock price

Nvidia stock price tumbled 9.5% and lost $279 billion in market capitalization, witnessing the deepest ever single-day decline in market value for a US company. The fall in Nvidia shares was on the back of softened investors’ optimism about artificial intelligence in a broad market selloff following tepid economic data.

Oil Prices

Crude oil prices extended losses after falling almost 5% in the previous session. Brent crude oil fell 0.53% to $73.36 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.63% to $69.90.

Gold Price Today

Gold prices were steady on Wednesday ahead of the monthly US payrolls report. Spot gold was flat at $2,493.62 per ounce, while US gold futures rose 0.1% to $2,524.90.

(With inputs from Reuters)

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