Indian stock market: 7 key things that changed for market overnight – Gift Nifty to a drop in US consumer confidence

The Asian markets traded flat while the US stock market ended mixed overnight ahead of the key economic data that could shed light on the possible timing of a US Federal Reserve interest rate cut.

Expectations for a cut of at least 25 basis points (bps) by the Fed at its June meeting stand at 59.1%, down from the near certainty at the end of January, according to the CME Group’s FedWatch tool.

Investors will now watch for Thursday’s January personal consumption expenditures price index (PCE), the Fed’s preferred inflation gauge.

On Tuesday, the Indian stock market indices ended higher, snapping a two-day correction.

The Sensex gained 305.09 points, or 0.42%, to close at 73,095.22, while the Nifty 50 settled 76.30 points, or 0.34%, higher at 22,198.35.

“Domestic equities are consolidating in a range with every dip being bought showing strength at lower levels. Overall, we expect the market to trade in range with positive bias. Globally, investors would watch out for US and Europe Consumer Confidence Data,” 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 28

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded flat on Wednesday as investors awaited key US inflation and China data later this week.

Japan’s Nikkei 225 and Topix were flat, while South Korea’s Kospi gained 0.1% and the Kosdaq rose 1.3%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 22,226 level, as compared with Nifty futures’ previous close of 22,196, indicating a positive start for the Indian stock market indices.

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Wall Street

The US stock market indices ended near flat on Tuesday ahead of inflation and other economic data.

The Dow Jones Industrial Average fell 96.82 points, or 0.25%, to 38,972.41, while the S&P 500 rose 8.65 points, or 0.17%, to 5,078.18. The Nasdaq Composite ended 59.05 points, or 0.37%, higher at 16,035.30.

Among stocks, UnitedHealth ended down 2.27%, while Viking Therapeutics shares jumped 121.02%. Amgen shares dropped 2.75%.

US Consumer Confidence

US consumer confidence retreated in February after three straight monthly increases. The Conference Board said that its consumer confidence index slipped to 106.7 this month from a downwardly revised 110.9 in January. Economists polled by Reuters had forecast the index little changed at 115.0 from the previously reported 114.8.

Also Read: Indian stock market today: Day trading guide for Nifty 50 to Sensex, nine stocks to buy or sell today — Feb 28

Apple cancels plans for electric car

Apple has canceled work on its electric car, a decade after the iPhone maker kicked off the project. Several employees working on the electric car project will be shifted to the firm’s artificial intelligence (AI) division, according to Bloomberg News.

US Durable Goods Orders

Orders for long-lasting US manufactured goods fell by the most in nearly four years in January. The Commerce Department’s Census Bureau said the orders for durable goods plunged 6.1% last month amid a sharp drop in commercial aircraft bookings. That was the largest decline since April 2020. Economists polled by Reuters had forecast durable goods orders tumbling 4.5%. Orders fell 0.8% year-on-year in January.

US Dollar

The US dollar held steady after the release of durable goods data overnight. The US dollar index, which measures the currency against a basket of peers, hovered around 103.82.

(With inputs from Reuters)

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Published: 28 Feb 2024, 07:12 AM IST