Indian stock market: 8 key things that changed for market overnight - Gift Nifty, US treasury yields to crude oil prices

Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note Wednesday following mixed global market cues.

Asian markets traded higher, while the US stock market ended lower overnight, with the S&P 500 ending six straight sessions of gains.

On Tuesday, the Indian stock market ended lower, extending losses to the third consecutive session.

The Sensex plunged 872.98 points, or 1.06%, to close at 81,186.44, while the Nifty 50 settled 261.55 points, or 1.05%, lower at 24,683.90.

“While markets had witnessed a pullback rally over the past week due to Indo-Pak ceasefire, US-China heading towards a tariff understanding and strong FII fund inflows, the mood is reversing back to caution with a negative bias. The current situation shows that markets will see bouts of optimism followed by a volatile phase as global economic uncertainty remains a key challenge for investors,” 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 Wednesday as investors assessed key economic data from the region, despite overnight losses on Wall Street.

Japan’s Nikkei 225 gained 0.26%, while the Topix rose 0.45%. South Korea’s Kospi rallied 0.58% and the Kosdaq surged 0.95%. Hong Kong’s Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 24,801 level, a premium of nearly 26 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended lower on Tuesday amid rising Treasury yields, with the US sovereign debt profile in focus.

The Dow Jones Industrial Average declined 114.83 points, or 0.27%, to 42,677.24, while the S&P 500 fell 23.14 points, or 0.39%, to 5,940.46. The Nasdaq Composite closed 72.75 points, or 0.38%, lower at 19,142.71.

Tesla share price rose 0.5%, Nvidia stock price fell 0.88%, Apple shares declined 0.92%, while Amazon stock price dropped 1.01%. Home Depot shares fell 0.6%.

US Treasury Yields

Longer-dated US Treasury yields edged higher amid the US fiscal concerns. The benchmark US 10-year note yield rose 0.2 basis points to 4.477%. The 30-year bond yield gained 2.3 bps to 4.965%. On Monday, it touched 5.037% in intraday trading, the highest since November 2023.

Japan Trade Deficit

Japanese exports rose for the seventh straight month in April but shipments to the US fell. Total exports rose 2% in April from a year earlier, matching a median market forecast but slowing from a 4% increase in March. Imports fell 2.2% in April from a year earlier, less than a 4.5% drop expected by analysts. As a result, Japan marked a trade deficit of 115.8 billion yen ($802.44 million), dashing expectations for a 227.1 billion yen surplus.

Core Sector Data

The output of eight key infrastructure sectors slowed down to an eight-month low of 0.5% in April. These eight sectors -- coal, crude oil, refinery products, natural gas, steel, cement, electricity and fertiliser -- expanded by 6.9% in April 2024. In March this year, output of these sectors grew by 4.6%.

Gold Prices

Gold prices rose as the dollar slipped to a two-week low and investors sought safety amid US fiscal uncertainty, Reuters reported. Spot gold price rose 0.4% to $3,300.72 an ounce, while US gold futures gained 0.6% to $3,304.00.

Crude Oil Prices

Crude oil prices jumped more than 1% after reports Israel is preparing a strike on Iranian nuclear facilities. Brent futures for July rallied 1.28% to $66.22 a barrel, while US West Texas Intermediate crude futures for July climbed 1.42% to $62.91.

(With inputs from Reuters)

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