Indian stock market: 8 key things that changed for market overnight - Gift Nifty, China lending rates to US stocks rally

Indian stock market: The domestic equity indices, Sensex and Nifty 50, are expected to open higher on Tuesday following gains in global markets.

Asian markets traded higher, while the US stock market rallied overnight led by tech stocks and as investors focused on the Democratic National Convention and the upcoming Jackson Hole Economic Symposium.

On Monday, the Indian stock market indices ended flat amid some profit booking at higher levels and mixed global cues.

The Sensex eased 12.16 points, or 0.02%, to close at 80,424.68, while the Nifty 50 settled 31.50 points, or 0.13%, to close at 24,572.65.

“With Q1FY25 earnings now behind, domestic equities would take cues from global factors for direction. We expect Nifty to consolidate at higher levels with sectorial rotation. This week’s focus will be FOMC meeting minutes and Fed Chair Powell's speech at the Jackson Hole Economic Symposium for indications of future interest rate policy,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Tuesday tracking overnight rally on Wall Street and as China released key economic data.

Japan’s Nikkei 225 rallied 1.1%, while the Topix gained 0.78%. South Korea’s Kospi jumped 0.99%, and the Kosdaq surged 1.19%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 24,655 level, a premium of nearly 65 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 tech stocks, with the S&P 500 and the Nasdaq extending their winning streak to eight consecutive sessions, the longest in 2024.

The Dow Jones Industrial Average rallied 236.77 points, or 0.58%, to 40,896.53, while the S&P 500 rose 54 points, or 0.97%, to 5,608.25. The Nasdaq Composite ended 245.05 points, or 1.39%, higher at 17,876.77.

Nvidia stock price rallied 4.35%, Intel shares gained 3.11%, Microsoft share price rose 0.73% and Alphabet added 2.22%. Advanced Micro Devices shares jumped 4.5%, while B. Riley Financial shares plunged 5.8% and Palo Alto Networks shares advanced 2.7%.

China Lending Rates

China left benchmark lending rates unchanged at a monthly fixing on Tuesday, in line with market expectations. The one-year loan prime rate (LPR) was kept at 3.35%, while the five-year LPR was unchanged at 3.85%.

Oil Prices

Crude oil prices traded lower on easing worries about a supply disruption in the Middle East.

Brent crude October contract fell 0.45% to $77.31 a barrel, while US West Texas Intermediate crude September futures declined 0.50% to $74.00 a barrel. Brent had fallen about 2.5% on Monday, while WTI dropped 3%.

Gold Rate Today

Gold prices held above the $2,500 mark led by a weaker US dollar and Treasury yields.

Spot gold rose 0.1% to $2,505.92 per ounce. Prices had hit an all-time high of $2,509.65 on Friday. US gold futures gained 0.1% to $2,543.90.

Currencies

The dollar hung near a seven-month low on Tuesday on bets the US central bank will start cutting interest rates from next month, Reuters reported.

The dollar index, which measures the US currency against six rivals, touched its lowest since January 2 of 101.82. The index is down more than 2% in August and set for the second month in the red.

The euro last fetched $1.1080, while the pound was steady at $1.2985. The Japanese yen was stronger at 146.50 per dollar, hovering close to the near two-week high.

US Treasury Yields

US Treasury yields also declined. The yield on the benchmark US 10-year note fell 2.8 basis points to 3.864%, while the two-year note yield dropped 0.4 bps to 4.0618%. The 30-year bond yield declined 4 bps to 4.1114%.

(With inputs from Reuters)

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