Indian stock market: 7 key things that changed for market over weekend – Gift Nifty, US nonfarm payrolls to oil prices

Asian markets traded mostly higher while the US stock market rallied on Friday after a blowout jobs report.

Several key corporate and macroeconomic data releases will guide market direction this week.

The stock market triggers include the first set of corporate results for the fourth quarter of FY24 (Q4FY24), India and US inflation data, US Federal Reserve meeting minutes, European Central Bank (ECB) policy meetings, corporate announcements, crude oil prices, foreign capital outflow, and other global cues.

Read here: Week Ahead: Inflation data, Q4 results, crude oil prices, global cues among key market triggers this week

On Friday, the domestic equity indices ended flat after the Reserve Bank of India (RBI) announced its monetary policy in line with expectations. The central bank kept the key policy repo rate unchanged at 6.5% and maintained its policy stance as ‘withdrawal of accommodation’.

The Sensex rose 20.59 points, or 0.03%, to close at 74,248.22, while the Nifty 50 settled flat at 22,513.70.

“The domestic markets registered gains for the week gone by as they remained well supported by strong macroeconomic data in the form of PMI numbers. At the current juncture, the earnings season too is expected to register satisfactory growth. The expectations on growth were seconded by RBI in its policy by way of strong projections for FY25. The domestic news flow is fairly supportive of the market sentiments, the volatility may be largely induced by global developments, specifically expectations around the timing of the US Fed rate action,” said Joseph Thomas, Head of Research, Emkay Wealth Management.

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Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Monday ahead of key economic data from the region. Japan’s Nikkei 225 rallied 1.01%, while the Topix gained 0.77%. South Korea’s Kospi fell 0.17% and the Kosdaq declined 0.76%. Hong Kong’s Hang Seng index futures indicated a stronger opening.

Gift Nifty Today

Gift Nifty was trading around the 22,650 level, a premium of over 40 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market indices ended higher on Friday after a strong jobs report.

The Dow Jones Industrial Average gained 307.06 points, or 0.80%, to 38,904.04, while the S&P 500 rallied 57.13 points, or 1.11%, to 5,204.34. The Nasdaq Composite ended 199.44 points, or 1.24%, higher at 16,248.52.

For the week, the Dow fell 2.3%, the S&P 500 dropped 1% and the Nasdaq declined 0.8%.

Also Read: Wall Street week ahead: Investors eye inflation data, Fed minutes after strong March jobs report

US Nonfarm Payrolls 

US employers hired far more workers than expected in March while raising wages. As per Labor Department’s employment report, US nonfarm payrolls increased by 303,000 jobs last month. Economists polled by Reuters had forecast 200,000 jobs, with estimates ranging from 150,000 to 250,000.

US Unemployment Rate

The US unemployment rate fell to 3.8% last month from 3.9% in February, remaining below 4% for 26 straight months, the longest such stretch since the late 1960s. According to the Labor Department data, Average hourly earnings rose 0.3% in March after gaining 0.2% in the prior month, while wages increased 4.1% on a year-on-year basis, the smallest gain since June 2021, after advancing 4.3% in February.

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Oil Prices

Crude oil prices declined over 1% in early Asian trade on Monday as tensions in the Middle East eased.

Brent crude futures fell 1.79% to $89.54 a barrel, while US West Texas Intermediate crude dropped 1.78% to $85.36 a barrel.

US Treasury Yields

US treasury yields and the dollar rose on Friday after a blowout US jobs report suggested the Federal Reserve may delay cutting interest rates while it awaits further inflation data, Reuters reported. The yield on benchmark 10-year Treasury notes rose to 4.422%. The dollar index, a measure of the US currency against six major peers, edged up 0.11% to 104.41.

(With inputs from Reuters)

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 making any investment decisions.

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Published: 08 Apr 2024, 07:09 AM IST