Indian stock market: 8 key things that changed for market overnight - Gift Nifty, US GDP to China rate cut

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

Asian markets traded mixed, while the US stock market ended higher with the S&P 500 scaling a record closing high.

Robust US economic data eased concerns that the US Federal Reserve may be cutting rates aggressively to curb any slowdown. Weekly jobless claims signaled a steady labor market, while the final reading of the US GDP (gross domestic product) confirmed that the economy grew 3% in the second quarter.

Investors have been swaying between a 25- and 50-basis point cut since the Fed commenced its easing cycle, with bets favoring a bigger cut now, up from 38.8% a week ago, the CME Group's FedWatch Tool showed.

On Thursday, the Indian stock market indices ended higher and hit their fresh all-time highs.

The Sensex hit a fresh record high of 85,930.43 before closing 666.25 points, or 0.78%, higher at 85,836.12. The Nifty 50 made a fresh peak of 26,250.90 but closed at 26,216.05, up 211.90 points, or 0.81%.

“Nifty continued its impressive run and closed at a record high for the fifth consecutive session, indicating strong market strength. We expect the bullish momentum to continue supported by strong action in frontline stock,” 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 mixed on Friday following overnight rally on Wall Street and supported by China’s policy stimulus measures.

Japan’s Nikkei 225 gained 0.52%, while the Topix fell 0.23%. South Korea’s Kospi declined 0.18%, while the Kosdaq fell 0.15%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 26,360 level, a premium of nearly 50 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 Thursday, with the S&P 500 scoring a record closing high, amid strong economic data.

The Dow Jones Industrial Average gained 260.36 points, or 0.62%, to 42,175.11, while the S&P 500 rose 23.11 points, or 0.40%, to close at 5,745.37, after rising to a record intraday high of 5,767.37. The Nasdaq Composite ended 108.09 points, or 0.60%, higher at 18,190.29.

Micron Technology share price jumped 15.78%, Wells Fargo shares rallied 5.19%, Southwest Airlines rose 5.42%, while Accenture stock price surged 5.57%. US-listed Chinese firms such as Li Auto gained 7.13%, PDD Holdings spiked 13.28%, and Alibaba stock rose 10.08%.

US GDP

US economic growth accelerated in the second quarter. US Gross domestic product (GDP) increased at an unrevised 3.0% annualized rate last quarter. Economists polled by Reuters had forecast GDP would be unrevised at a 3.0% pace. Growth in the first quarter was revised up to a 1.6% rate from the previously reported 1.4% pace.

US Jobless Claims

The number of Americans filing new applications for unemployment benefits unexpectedly fell last week. Initial claims for state unemployment benefits dropped 4,000 last week to a seasonally adjusted 218,000 for the week ended September 21. Economists polled by Reuters had forecast 225,000 claims for the latest week.

China Rate Cut

China’s central bank said it was lowering the borrowing cost of its seven-day reverse repurchase agreements, part of the biggest stimulus package since the pandemic, Reuters reported. The People's Bank of China said the rate would be cut by 20 basis points (bps) to 1.50% from 1.70% earlier. The central bank would also cut the reserve requirement ratio (RRR) for banks by 50 bps.

Tokyo Inflation

Core inflation in Japan’s capital matched the central bank’s 2% target in September. The Tokyo core consumer price index (CPI), which excludes volatile fresh food costs, rose 2.0% in September from the previous year. It slowed from a 2.4% increase in August.

Oil Prices

Crude oil prices fell for a third day on worries over expectations of higher supplies. Brent crude oil prices fell 0.78% to $71.04 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.84% to $67.10.

(With inputs from Reuters)

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