Indian stock market: 7 things that changed for market overnight - Gift Nifty to Wall Street rally on Donald Trump’s win

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to remain volatile on Thursday following mixed global market cues after the US election results 2024.

Asian markets traded lower, while the US stock market ended sharply higher overnight, with both the Dow Jones and S&P 500 registering their biggest one-day percentage gains since November 2022.

Republican Donald Trump became the 47th US President, winning popular votes and potentially grabbing the votes of 270 electors needed to become the next US President.

Investors will now focus on the US Federal Reserve’s monetary policy decision to be announced today. The central bank is widely expected to cut the benchmark interest rate by 25 basis points (bps). However, traders have begun to trim bets for a cut in December and the number of reductions expected next year, according to CME's FedWatch Tool.

On Wednesday, the Indian stock market benchmark indices jumped over 1% each after former US President and Republican candidate Donald Trump took a decisive lead in the 2024 US election, driving market sentiment higher.

The Sensex surged 901.50 points, or 1.13%, to close at 80,378.13, while the Nifty 50 settled 270.75 points, or 1.12%, higher at 24,484.05.

“The feel good factor of Trump's win in the US election had a rub-off effect on world equity markets, including local indices as domestic investors resorted to value buying, especially in IT stocks, which pushed the benchmark Sensex above the 80k mark. The market is hoping that the new regime will not hurt the HIB visa rules, leading to a rally in the recently beaten-down IT stocks. However, investors remain skeptical about the recovery, as there has been no let up in FII selling in the domestic equity market,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Thursday after Trump won the US election.

Japan’s Topix rose 0.61%, while the Nikkei 225 declined 0.62%. South Korea’s Kospi fell 0.2%, and the Kosdaq dropped 0.78%. Hong Kong’s Hang Seng index futures indicated a weaker opening.

Gift Nifty Today

Gift Nifty was trading around 24,440 level, a discount of nearly 150 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market indices rallied to close at record highs on Wednesday after Republican Donald Trump won the 2024 US presidential election.

The Dow Jones Industrial Average jumped 1,508.05 points, or 3.57%, to 43,729.93, while the S&P 500 surged 146.28 points, or 2.53%, to 5,929.04. The Nasdaq Composite ended 544.29 points, or 2.95%, higher at 18,983.47.

Tesla stock price rallied 14.5%, while Nvidia shares surged 4.07% and Intel stock jumped 7.4%. Trump Media & Technology Group shares gained 6%.

Dollar

The US dollar hovered off a four-month high, while the US Treasuries fell sharply, propelling yields to multi-month highs.

The dollar index, which measures the greenback against six major peers, edged down 0.05% to 105.06 after surging to its highest since July 3 at 105.44 in the previous session, Reuters reported. The yen was up 0.22% at 154.30 per dollar, the euro steadied at $1.0731, while sterling fetched 1.2885.

Bitcoin surged to a record high, betting on a softer line on cryptocurrency regulation.

US Treasury Yields

US Treasuries fell sharply, propelling yields to multi-month highs. The benchmark 10-year Treasury yield rose to 4.479%, its highest since July,

Gold Prices

Gold prices struggled for momentum on Thursday, as the dollar firmed after Donald Trump’s election victory. Spot gold was little changed at $2,663.02 per ounce, while US gold futures fell 0.2% to $2,670.40.

Oil Prices

Crude oil prices steadied as traders weighed the likely impact of Donald Trump’s election victory, and a build in US crude inventories.

Brent crude oil rose 0.33% to $75.17 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.26% to $71.88.

(With inputs from Reuters)

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