Indian stock market: 8 key things that changed for market overnight - Gift Nifty, China LPR to S&P, Dow Jones hit record

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

Asian markets traded higher, while the US stock market rallied overnight, with the Dow Jones and S&P 500 touching record high levels after the US Federal Reserve began its monetary easing cycle with a 50 basis points (bps) rate cut.

On Thursday, the Indian stock market ended higher after the US Fed’s oversized rate cut, with both the benchmark indices hitting record highs intraday.

The Sensex gained 236.57 points, or 0.29%, to close at 83,184.80, while the Nifty 50 settled 38.25 points, or 0.15%, higher at 25,415.80.

“With the US Federal policy outcome now behind us, the focus will now shift to RBI monetary policy next month, and the stance it will take on the interest rate front to prop up the economy. Technically, Nifty’s immediate target continues to be at the psychological 26,000 milestone, while the index is having support at 25,000 levels,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Friday tracking overnight rally on Wall Street, with Japan’s Nikkei leading gains.

Nikkei 225 rallied 1.9% and the Topix gained 1.63%. South Korea’s Kospi rose 1.45% and the Kosdaq spiked 1.51%. Hong Kong’s Hang Seng index futures indicated a higher opening. Mainland China’s CSI 300 futures were flat.

Gift Nifty Today

Gift Nifty was trading around 25,525 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 indexes ended higher on Thursday with the S&P 500 and the Dow hitting intraday record.

The Dow Jones Industrial Average jumped 1.26% to close at 42,025.19, crossing the 42,000 level for the first time, while the S&P 500 surged 1.7% to end at 5,713.64, topping 5,700 for the first time. The Nasdaq Composite ended 2.51% higher at 18,013.98.

Nvidia stock price jumped 3.97%, while Advanced Micro Devices shares surged 5.7% and Broadcom stock gained 4.9%%. Microsoft share price rose 1.83%, Tesla stock price rallied 7.4% and Apple shares surged 3.7%. Nike stock price spiked over 7% in after hours.

Bank of England

The Bank of England held interest rates at 5.0% and voted to run down its stock of British government bonds by another 100 billion pounds ($133 billion) over the coming 12 months.

China Lending Rates

China kept its benchmark lending rates for September unchanged at its monthly fixing. The People’s Bank of China (PBOC) kept the one-year loan prime rate at 3.35% and the five-year rate at 3.85%.

US Initial Jobless Claims

The number of Americans filing new applications for unemployment benefits unexpectedly fell last week. Initial claims for state unemployment benefits dropped 12,000 last week to a seasonally adjusted 219,000 for the week ended September 14. Economists polled by Reuters had forecast 230,000 claims for the latest week.

US Existing Home Sales

US existing home sales fell more than expected in August. Home sales fell 2.5% last month to a seasonally adjusted annual rate of 3.86 million units. Economists polled by Reuters had forecast home resales falling to a rate of 3.90 million units. Home resales dropped 4.2% YoY in August. The median existing home price increased 3.1% from a year earlier to $416,700, the highest on record for any August.

Japan Inflation

Japan’s inflation gauge accelerated in August for a fourth consecutive month, ahead of the Bank of Japan’s policy decision meeting. Japan’s core consumer prices index rose 2.8% YoY, in line with Reuters estimates, versus a 2.7% rise in the previous month.

(With inputs from Reuters)

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