Indian stock market: 7 key things that changed for market over weekend – Gift Nifty to rise in US producer price index

Asian markets traded mixed, while the US stocks ended lower last week amid diminishing hopes of early interest rate cuts by the US Federal Reserve.

Investors will now focus on several stock market triggers in the third week of the month including domestic macroeconomic data, US Fed minutes meeting, crude oil prices, foreign capital inflow, along with global market cues.

On Friday, the Indian stock market indices closed with decent gains amid positive global cues, extending their rise into the fourth consecutive session.

The Sensex surged 376.26 points, or 0.52%, to end at 72,426.64, while the Nifty 50 settled 129.95 points, or 0.59%, higher at 22,040.70.

“Indian markets showed resilience despite volatility. Q3 earning season has ended on a buoyant note with Nifty delivering a strong beat with a 17% YoY PAT growth versus estimates of +11%. We expect market sentiment to strengthen further as the prospect of a pre-election rally is quite strong. Nifty is hovering near all-time zones and is all set to make new highs next week,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — February 19

Here are key global market cues for Sensex today:

Asian Markets

Asian shares traded mixed on Monday as fading chances for early interest rate cuts globally dampened sentiment, though investors are hoping China markets return from holiday with a spring in their step.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2%, after bouncing 2% last week.

Japan’s Nikkei 225 eased 0.1%, while the Topix was flat. South Korea’s Kospi gained 0.8%, while the Kosdaq rose 0.1%. Hong Kong’s Hang Seng index futures indicated a slightly higher opening.

Gift Nifty

Gift Nifty was trading around 22,164 level, a premium of more than 60 points from Nifty futures’ Friday close, indicating a gap-up start for the Indian stock market indices.

Also Read: Week Ahead: Macro data, FII mood, global cues among key market triggers as Nifty 50 eyes 22,150+ this week

Wall Street

The US stock market fell on Friday after a hotter-than-expected producer prices report eroded hopes for imminent interest rate cuts by the Federal Reserve.

The Dow Jones Industrial Average declined 149.48 points, or 0.39%, to 38,623.64, while the S&P 500 fell 24.18 points, or 0.49%, to end at 5,005.15 points. The Nasdaq Composite ended 132.38 points, or 0.83%, lower at 15,775.65. 

Among stocks, Meta Platforms shares fell 2.2%, while Applied Materials jumped 6.4%. Vulcan Materials share price surged 5.2% and Roku shares tanked 23.8%. 

Coinbase Global share price rallied 8.8%, while DoorDash stock price dropped 8.1%.

Also Read: Wall Street week ahead: Nvidia, Walmart earnings and Fed minutes in focus

US Producer Prices

US producer prices increased more than expected in January led by strong gains in the costs of services, stoking financial market fears that inflation was picking up after months of cooling.

The producer price index for final demand rose 0.3% last month, the largest increase since August 2023, after declining by a revised 0.1% in December. Economists polled by Reuters had forecast the PPI gaining 0.1% following a previously reported 0.2% drop. In the 12 months through January, the PPI increased 0.9% after climbing 1.0% in December.

Goldman lifts S&P 500 target to 5,200

Goldman Sachs Group Inc. strategists have boosted their forecast on the S&P 500 Index for a second time as the stock market eclipsed the significant 5,000 milestone this month.

David Kostin now sees the S&P 500 rising to 5,200 by the end of this year, raising his forecast by about 2% from the 5,100 level he predicted in mid-December. The new target implies a 3.9% jump from Friday’s close.

Read here: Goldman lifts S&P 500 target to 5,200 on profit expansion

US bond yields, dollar spike

US Treasury yields rose on Friday after US producer prices data added to the view that any interest rate cuts by the Federal Reserve are not imminent.

The yield on the benchmark US 10-year Treasury note climbed 5.3 basis points to 4.293%, down from an earlier high of 4.33%.

Japan’s core machinery orders 

Japan’s core machinery orders rose 2.7% in December from the previous month as compared with a 2.5% rise expected by economists in a Reuters poll. On a year-on-year basis, core orders declined 0.7%, versus a forecast for a 1.4% drop.

(With inputs from Agencies)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 19 Feb 2024, 07:06 AM IST