Indian stock market: 7 key things that changed for market overnight – Gift Nifty, RBI minutes to Nvidia stock price jump

Asian markets traded higher, while the US stock market rallied overnight with the S&P 500 ending at a record high and the Dow Jones Industrials Average closing above 39,000 for the first time.

The bullish global market sentiment was led by a buoyant outlook from Nvidia Corp., the most valuable chipmaker, whose shares surged 16% amid artificial-intelligence mania, boosting its market value by $277 billion in a single day.

On Thursday, the Indian stock market indices rebounded and ended sharply higher with the Nifty 50 hitting record high during the day.

The Sensex climbed 535.15 points, or 0.74%, to close at 73,158.24, while the Nifty 50 settled at 22,217.45, up by 162.40 points, or 0.74%.

“Strong Q4 results and a positive outlook from chipmaker Nvidia led to a revival in global sentiments. Further, HSBC Flash India PMI data for the month of February pointed towards India’s economic activity – both manufacturing and services being at a 7-month high which helped Indian markets to make a sharp recovery. We expect this ongoing momentum to continue with markets attaining new highs,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd. 

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — February 23

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

Asian Markets

Asian markets traded higher on Friday tracking overnight rally on Wall Street, with investors awaiting China’s property prices data.

Japanese markets are closed for a public holiday. South Korea’s Kospi rose 0.4% and the Kosdaq gained 0.2%. Hong Kong’s Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 22,305 level, as compared with Nifty futures’ previous close of 22,270, indicating a positive start for the Indian stock market indices.

Wall Street

The US stock market ended higher on Thursday, with the S&P 500 and Dow Jones Industrial Average both closing at record highs, led by growth and technology stocks the day after Nvidia’s bumper earnings and outlook.

The Dow Jones Industrial Average rallied 456.87 points, or 1.18%, to close at 39,069.11, while the S&P 500 jumped 105.23 points, or 2.11%, to 5,087.03. The Nasdaq Composite ended 460.75 points, or 2.96%, higher at 16,041.62.

Nvidia adds $277 billion in market cap

Nvidia share price jumped over 16% to close at record high level after the company reported a blowout earnings and outlook amid artificial-intelligence (AI) boom. Nvidia jumped 16% Thursday, adding about $277 billion in market capitalization and bringing its total market value near $2 trillion. 

Read here: Nvidia adds $277 billion in market capitalisation in one day, beats Meta’s record

Fed’s Waller urges patience on rate cut

US Federal Reserve Governor Christopher Waller said January’s jump in consumer prices warrants caution in deciding when to start cutting interest rates. However, he still expects reductions to begin later this year, Bloomberg reported.

“The strength of the economy and the recent data we have received on inflation mean it is appropriate to be patient, careful, methodical, deliberative – pick your favorite synonym. Whatever word you pick, they all translate to one idea: What’s the rush?,” Waller said Thursday in a speech in Minneapolis.

RBI Minutes

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting minutes highlighted that the policy must continue to be actively disinflationary to ensure anchoring of inflation expectations and fuller transmission.

RBI Governor Shaktikanta Das said that the current setting of monetary policy is moving in the right direction, with growth holding firm and inflation trending down to the target. “At this juncture, monetary policy must remain vigilant and not assume that our job on the inflation front is over. We must remain committed to successfully navigating the ‘last mile’ of disinflation which can be sticky,” said Das.

Read here: RBI MPC Minutes: Job on inflation front not over, ‘last mile’ of disinflation can be sticky; 5 key highlights

US weekly jobless claims fall

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week. Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 201,000 for the week ended February 17. Economists polled by Reuters had forecast 218,000 claims for the latest week.

(With inputs from Agencies)

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Published: 23 Feb 2024, 07:05 AM IST