Indian stock market: 8 key things that changed for market overnight – Gift Nifty, fall in US stocks to weak dollar

Asian markets traded lower, while the US stocks ended in the red overnight amid receding hopes of an early interest rate cut by the US Federal Reserve.

Investors now await the release of minutes from the Fed’s latest policy meeting as well as remarks from a slew of central bank officials later this week.

On Tuesday, the Indian stock market indices ended higher with the benchmark Nifty 50 hitting its fresh record high of 22,215.60 in intraday trade.

The Sensex gained 349.24 points, or 0.48%, to close at 73,057.40, while the Nifty 50 ended 74.70 points, or 0.34%, higher at 22,196.95.

“Amidst market volatility, the domestic market is once again poised to approach record highs. The latest upward trajectory is bolstered by gains in the banking sector, with private banks witnessing a rebound from a recent sharp correction. However, the decline in mid & small caps suggests that investors are continuing to exercise caution due to higher valuations,” said Vinod Nair, Head of Research, Geojit Financial Services.

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The forthcoming release of the US Federal Reserve meeting minutes this week holds significance, particularly in light of recent sticky inflation data, which raises uncertainty regarding the timing of the Fed’s initiation of its easing cycle, Nair added.

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

Asian Markets

Asian markets traded lower on Wednesday tracking overnight losses on Wall Street. Japan’s Nikkei 225 declined 0.39%, while South Korea’s Kospi fell 0.2%. Hong Kong’s Hang Seng index futures indicated a stronger start. 

Gift Nifty Today

Gift Nifty was trading around 22,268 level, as compared with Nifty futures’ previous close of 22,232, indicating a positive start for the Indian stock market indices.

Wall Street

The US stock market ended lower on Tuesday as expectations of early interest rate cuts by the US Federal Reserve fade.

The Dow Jones Industrial Average declined 64.19 points, or 0.17%, to 38,56.80, while the S&P 500 dropped 30.06 points, or 0.60%, to end at 4,975.51. The Nasdaq Composite ended 144.87 points, or 0.92%, lower at 15,630.78. 

Among stocks, Nvidia share price tumbled 4.35%, its biggest daily percentage fall since October 17, while Walmart shares rose 1.13% to close at a record high. Vizio jumped 16.26% and Discover Financial Services surged 12.61%.

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US Dollar

The dollar fell broadly on Wednesday tracking a dip in US Treasury yields in line with its global peers. The US dollar index steadied at 104.05. The greenback slipped below 150 yen in early Asia trade and last bought 149.93 yen, giving the Japanese currency.

Oil Prices

Crude oil prices regained some ground in early Asian trade on Wednesday. Brent crude futures rose 0.15%, to $82.46 a barrel, while US West Texas Intermediate crude futures (WTI) were up 0.12% at $77.13. The Brent and WTI contracts slipped 1.5% and 1.4% respectively on Tuesday.

Japan’s Trade Balance

Japan’s exports rose 11.9% in January from the same month a year ago, while imports fell 9.6%, versus the median estimate for an 8.4% decrease. The trade balance came to a deficit of 1.758 trillion yen ($11.73 billion), versus the median estimate for a deficit of 1.926 trillion yen.

Finance Ministry

India’s economy is performing well, with risks evenly balanced, to achieve 7% growth in FY25, but geopolitical tensions and geo-economic fragmentation pose risks to the country’s growth, the finance ministry said in its latest monthly economic review.

Also Read: High time India Inc picks up the baton to further capex: RBI bulletin

RBI Bulletin

India’s economy continues to sustain the momentum achieved in the first half of 2023-24, and the expectations for a fresh round of capex by the corporate sector to take the baton from the government and fuel the next leg of growth are mounting, said Reserve Bank of India’s (RBI) officials in its monthly bulletin.

(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 taking any investment decisions.

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Published: 21 Feb 2024, 07:15 AM IST