Indian stock market: 7 key things that changed for market overnight – Gift Nifty, Nasdaq’s record close to oil prices

Asian markets traded higher, while the US stock market saw a record rally overnight led by gains in technology stocks on Artificial Intelligence (AI) boost.

On Friday, the Indian stock market benchmark indices ended higher, with the Nifty 50 hitting record high during the session. 

The Sensex rose 181.87 points, or 0.24%, to close at 76,992.77, while the Nifty 50 settled 66.70 points, or 0.29%, higher at 23,465.60. 

Indian stock market was closed on Monday, June 17, on account of Eid ul-Adha 2024. 

This week, investors will watch out for any announcements related to the upcoming Union Budget or other government policies which may result in stock-specific action, domestic and global macroeconomic indicators, trends in foreign fund flow, crude oil prices, central bank policy verdicts, and other global cues that will drive the market going ahead.

Read here: Week Ahead: Macro data, BoE, China policy verdicts, FII activity, global cues among key market triggers this week

“The positive undertone of the market helped benchmark Nifty scale new highs and inch closer towards the 23500 mark as cautious investors continued with their select buying approach in key frontline stocks. However, midcap & smallcap stocks have been seeing renewed buying interest with large-cap stocks facing higher valuation hurdles. As expectations start building up from the government in the run up to the Budget next month, markets may face bouts of intra-day volatility going ahead,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key domestic and global market cues for Sensex today:

Asian Markets

Asian markets traded higher tracking overnight record rally on Wall Street led by technology stocks.

Japan’s Nikkei 225 gained 0.84%, while the Topix rose 0.64%. South Korea’s Kospi rallied 0.9%. Hong Kong Hang Seng index futures indicated a higher opening.

Also Read: Dividend stocks: 4 stocks to trade ex-dividend on June 18

Gift Nifty Today

Gift Nifty was trading around 23,590 level, a premium of nearly 130 points from the Nifty futures’ Friday’s close, indicating a strong start for the Indian stock market indices.

Wall Street

US stock market ended sharply higher on Monday with the S&P 500 and Nasdaq scoring record closing highs led by a rally in technology shares amid enthusiasm over artificial intelligence.

The Dow Jones Industrial Average gained 188.94 points, or 0.49%, to 38,778.10, while the S&P 500 jumped 41.63 points, or 0.77%, to 5,473.23. The Nasdaq Composite ended 168.14 points, or 0.95%, higher at 17,857.02.

Among stocks, Apple share price ended 1.97% higher, while Microsoft shares rallied 1.31%. Broadcom shares surged 5.41%, Taiwan Semiconductor Manufacturing share price gained 2.74% and Micron Technology stock price rose 4.58%. Autodesk shares spiked 6.48%.

Also Read: Equites, fixed income, and Gold: Axis recommends diverse multi-asset portfolios for optimal risk management

US Fed Officials

The US Federal Reserve would be able to cut its benchmark interest rate once this year, Philadelphia Fed President Patrick Harker said, if his economic forecast plays out.

“If all of it happens to be as forecasted, I think one rate cut would be appropriate by year’s end,” Harker said after outlining his view that he sees slowing but above-trend economic growth, a modest rise in the unemployment rate, and a “long glide” back to target for inflation as his base case, Reuters reported.

Trade Deficit

India’s trade deficit widened to a seven-month high of $23.78 billion in May, government data showed. While merchandise exports rose by 9.1% YoY to $38.13 billion last month, imports also increased by 7.7% to $61.91 billion from $57.48 billion, YoY.

Also Read: Stock market news: When will Nifty 50 index climb to 30K peak?

Oil Prices

Crude oil prices extended gains to trade higher on Tuesday amid a stronger demand outlook.

Global benchmark Brent crude futures rose 0.25% to $84.46 per barrel, while US West Texas Intermediate crude futures gained 0.2% to $80.49 a barrel. Both benchmarks rallied around 2% on Monday, closing at their highest since April.

Dollar

The US dollar drifted lower, extending the previous day’s losses. The US dollar index, which measures the currency against the euro, sterling and four other major peers, edged slightly lower to 105.26 in early Asian trading hours.

(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: 18 Jun 2024, 07:06 AM IST