Indian stock market: 8 key things that changed for market overnight – Gift Nifty, US retail sales to spike in oil prices

Asian markets traded higher, while US stocks ended higher overnight after economic data increased investors’ optimism that the US Federal Reserve will begin interest rate cuts in coming months.

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On Thursday, the Indian stock market indices ended higher for the third consecutive session boosted by positive global cues.

The Sensex gained 227.55 points, or 0.32%, to close at 72,050.38, while the Nifty 50 ended 70.70 points, or 0.32%, higher at 21,910.75.

“With the end of Q3 result season, the focus is now shifting to fundamentals and economic macro data. Domestic equities are taking support from better-than-expected inflation which would keep the trend positive. Nifty is now close to 22,000 as well as its all-time high, we expect it to surpass these levels and touch new highs,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

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

Asian Markets

Asian markets traded higher on Friday, with Japan’s Nikkei jumping to a fresh 34-year high, tracking overnight gains on Wall Street.

Japan’s Nikkei jumped 1.6% to 38,769.64, while Topix rallied 1.1% to 2620.53. South Korea’s Kospi rose 0.84% and Hong Kong’s Hang Seng index futures indicated a stronger opening. Mainland China markets remained closed for the Chinese New Year holidays.

Also Read: Buy or sell: Rajesh Palviya of Axis Securities recommends Federal Bank, NOCIL, M&M stock for today

Gift Nifty Today

Gift Nifty was trading around 22,088 level, as compared with Nifty futures’ previous close of 22,015, indicating a mildly positive start for the Indian stock market indices.

Wall Street

US stock market indices ended higher on Thursday after retail sales data declined more than expected, raising hopes that the Fed will soon start cutting interest rates in coming months.

The Dow Jones Industrial Average rallied 350.07 points, or 0.91%, to 38,774.73, while the S&P 500 rose 29.05 points, or 0.58%, to end at 5,029.67. The Nasdaq Composite ended 47.03 points, or 0.30%, higher at 15,906.17.

Among stocks, Alphabet shares declined 2.17%, Apple shares closed 0.1% lower, while CBRE Group surged 8.5%. Wells Fargo share price jumped 7.2%, while Cisco Systems dropped 2.43% and West Pharmaceutical Services tanked 14.1%.

US Retail Sales

US retail sales fell more than expected by 0.8% in January, the Commerce Department’s Census Bureau said. Data for December was revised lower to show sales rising 0.4% instead of 0.6% as previously reported. Economists polled by Reuters had forecast retail sales dipping 0.1%.

Berkshire trims Apple, sheds four stocks

Berkshire Hathaway sold 10 million Apple shares in the fourth quarter and has also cut its stake in four common stock holdings. It still owned more than 905 million Apple shares worth about $174 billion.

In a regulatory filing describing its US-listed stock holdings at the end of 2023, Berkshire reported no holdings in DR Horton, Globe Life, Markel and StoneCo, after holding more than $1 billion of those stocks at the end of September.

The conglomerate raised its stake in oil company Chevron, one of its biggest holdings, and reduced its stakes in HP and Paramount Global, Reuters reported. However, it did not disclose what could be a major new investment by Warren Buffett.

Also Read: Up 50% in 2024, Nvidia stock fast approaches $2 trillion-mark after bulls tighten grip on AI-fueled rally

US Jobless Claims

Fewer Americans filed for jobless claims last week as the labor market continues to show resilience. Applications for unemployment benefits fell by 8,000 to 212,000 for the week ending February 10, the Labor Department reported. The four-week average of claims rose by 5,750 to 218,500, up from 212,750 the previous week.

Dollar falls

The US dollar fell for a second straight session and the Treasury yields dropped on Thursday after US retail sales dropped by higher-than-expected in January.

The US dollar index was last down 0.45% at 104.25. The yield on the benchmark US 10-year Treasury note fell 1 basis points to 4.24%.

Oil prices spike

Crude oil prices held near the highest close in three months amid a weaker US dollar and signs that OPEC members are complying with supply cuts.

West Texas Intermediate traded above $78 a barrel after rising 1.8% on Thursday to its highest close since November 14, while Brent crude was up 1.54% at $82.86.

(With inputs from Agencies)

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Published: 16 Feb 2024, 07:07 AM IST