Indian stock market: 8 key things that changed for market overnight - Gift Nifty, CPI inflation to Tesla stock price

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday following weakness in global markets.

Asian markets traded lower, while US stock market ended with losses overnight as the post-election rally fizzled amid profit booking.

Investors will watch out for US consumer price inflation data to be released today, followed by producer prices inflation and retail sales data later this week, as these could provide clues about the US Federal Reserve’s policy path going forward.

On Tuesday, the Indian stock market extended its weakness, with both the benchmark indices falling over a percent each.

The Sensex crashed 820.97 points, or 1.03%, to close at 78,675.18, while the Nifty 50 settled 257.85 points, or 1.07%, lower at 23,883.45.

“Domestic earnings disappointment and weak Asian & European market cues fuelled another round of massive correction as key benchmark indices slumped for the 4th straight session. The expensive valuations of Indian markets and the rising bond yields coupled with worries of Trump's likely protectionist policies going ahead has continued to fuel pessimism amongst the local investors,” 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 Wednesday tracking overnight losses on Wall Street.

Japan’s Nikkei 225 fell 0.5%, while the Topix dropped 0.3%. South Korea’s Kospi declined 1.1%, and the Kosdaq Index fell 1.4%. Hong Kong Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 23,890 level, a discount of nearly 70 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market indices ended lower on Tuesday amid profit booking, while investors awaited US inflation data.

The Dow Jones Industrial Average declined 382.15 points, or 0.86%, to 43,910.98, while the S&P 500 fell 17.36 points, or 0.29%, to 5,983.99. The Nasdaq Composite closed 17.36 points, or 0.09%, lower at 19,281.40.

Tesla stock price dropped 6%, while Trump Media & Technology Group Corp shares declined 8.8%.

Nvidia share price gained 2.1%, while Amazon and Microsoft shares rose over 1% each. Amgen stock price tanked 7%, Novavax shares plunged 6%, and Honeywell stock hit a record high and closed 3.8% higher.

US Fed Officials

Minneapolis Federal Reserve Bank President Neel Kashkari that US monetary policy is “modestly restrictive,” with short-term borrowing costs continuing to slow inflation and the economy, but not by a lot, Reuters reported.

Richmond Fed President Thomas Barkin had said earlier in the day that the US central bank is ready to respond if inflation pressures rise or the job market weakens.

India Inflation & IIP

India’s retail inflation accelerated to a 14-month high in October breaching the RBI’s tolerance band. The consumer price index (CPI)-based retail inflation rose to 6.21% on an annual basis last month, up from 5.49% in September.

The Index of Industrial Production (IIP) in India expanded 3.1% in September as against a contraction of 0.1% in August, official data showed.

Gold Price Today

Gold prices were flat ahead of the key US inflation data due later in the day. Spot gold was flat at $2,599.19 per ounce, after hitting its lowest since September 20 in the previous session, while US gold futures steadied at $2,605.10.

Dollar

The US dollar rose to a 6-1/2-month high against major peers on Tuesday. The US dollar index, which measures the currency against six peers, rose 0.51% to 105.96 after rising to as high as 106.17 - its highest level since early May.

Oil Prices

Crude oil prices steadied neared its lowest level this month. Brent crude oil eased 0.01% to $71.88 a barrel, while the US West Texas Intermediate (WTI) crude futures fell 0.07% to $68.07.

(With inputs from Reuters)

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