Indian stock market: 8 key things that changed for market overnight – Gift Nifty, US tech stocks selloff to bond yields

Asian markets traded lower while the US stocks ended sharply in the red overnight as Israel is expected to respond to Iran’s attack over the weekend.

On Monday, the Indian stock market indices ended over a percent lower each for the second consecutive session dragged by selling across sectors amid rising tensions in the Middle East on the Iran-Israel conflict.

The Sensex plunged 845.12 points, or 1.14%, to close at 73,399.78, while the Nifty 50 settled 246.90 points, or 1.1%, lower at 22,272.50.

“We expect domestic markets to witness near-term headwinds amid rising volatility. With the start of result season and poll promises by several political parties, we may continue to see sector and stock-specific action,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — April 16

Here are key global market cues for Sensex today:

Asian Markets

Asian markets extended decline and traded lower on Tuesday ahead of key economic data from China and as geopolitical tension intensified in the Middle East.

Japan’s Nikkei 225 plunged 1.5%, while the Topix declined 1.04%. South Korea’s Kospi dropped 1.31% and the Kosdaq fell 0.86%. Hong Kong’s Hang Seng index futures indicated a weak opening.

Gift Nifty Today

Gift Nifty was trading around the 22,185 level, a discount of nearly 180 points from the Nifty futures’ previous close, indicating a weak start for the Indian stock market indices.

Wall Street

US stock market indices ended sharply lower on Monday amid a jump in Treasury yields and concerns over rising geopolitical tensions between Iran and Israel. 

Losses in technology megacap stocks dragged as Nasdaq 100 dropped 1.5% while the S&P 500 broke below the 5,100 level.

The Dow Jones Industrial Average declined 248.13 points, or 0.65%, to 37,735.11, while the S&P 500 dropped 61.59 points, or 1.20%, to 5,061.82. The Nasdaq Composite ended 290.07 points, or 1.79%, lower at 15,885.02.

Among stocks, Apple shares fell 2.19%, while Tesla share price plunged 5.6% and Salesforce shares slumped 7.28%. Nvidia shares fell 2.5% and Microsoft share price sank 2%.

Goldman Sachs shares gained 2.92% after its first-quarter profit beat Wall Street estimates and M&T Bank shares jumped 4.74% after forecasting better-than-expected annual net interest income (NII), while brokerage Charles Schwab surged 1.71%.

Read here: Goldman Sachs stock jumps over 5% after Q1 profit beats Wall Street estimates

US Retail Sales

US retail sales increased more than expected in March amid a surge in receipts at online retailers, the report from the Commerce Department showed. Retail sales rose 0.7% last month, while data for February was revised higher to show sales rebounding 0.9%, which was the largest gain in just over a year, instead of the previously reported 0.6%. Economists polled by Reuters had forecast retail sales would rise 0.3%. Sales jumped 4.0% on a year-on-year basis in March.

Treasury Yields

The benchmark US 10-year Treasury Yields hit five-month highs on Monday after stronger-than-expected retail sales data from March. The yield on 10-year Treasury notes was up 12.9 basis points (bps) to 4.628%, while the yield on the 30-year Treasury bond was up 13.5 bps at 4.739%. The two-year US Treasury yield was up 5.3 bps at 4.935%.

India’s Trade Deficit

India’s goods trade deficit narrowed by nearly 17% to an 11-month low of $15.6 billion in March from $18.71 billion in February, commerce ministry data showed. The March figure exceeded economists’ expectations of the deficit coming in at $18.55 billion, according to a Reuters poll.

Read here: India’s goods trade deficit narrows to 11-month low of $15.6 bn in March

Oil Prices

Crude oil prices gained amid elevated tensions in the Middle East after Israel vowed to respond to the attack by Iran.

Brent crude oil rose 0.54% to $90.59 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.57% to $85.90.

Yen At 34-Year Low

The US dollar reached its highest since early November against a basket of currencies on Monday and sent the yen to its lowest level since 1990, Reuters reported. The dollar index reached 106.23, the highest since November 2, and was last up 0.24% at 106.20. The Japanese Yen set a fresh 34-year low against the dollar of 154.45 overnight.

Japan’s finance minister warned that he’s ready to take all available measures in the foreign exchange market if needed.

(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: 16 Apr 2024, 07:13 AM IST