Indian stock market: 9 key things that changed for market overnight – Gift Nifty, US GDP, jobless claims to China PMI

Asian markets traded higher, while the US stock indices ended lower overnight weighed down by selling in technology stocks.

Investors digested data on US GDP, showing the economy had grown slower than previously expected in the first quarter, and weekly jobless claims that rose more than expected.

The chances for an at least 25-basis-point interest rate reduction by the US Federal Reserve in September rose to 50.4% from 48.7% before the data, according to the CME Group’s FedWatch Tool.

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On Thursday, the Indian stock market benchmark indices suffered heavy selloff amid the monthly F&O expiry and ended nearly a percent lower each, extending losses for the fifth session in a row.

The Sensex plunged 617.30 points, or 0.83%, to close at 73,885.60, while the Nifty 50 settled 216.05 points, or 0.95%, lower at 22,488.65.

“Nervousness ahead of the exit poll and weak global cues continue to dent sentiments. Global markets remained under pressure due to rising bond yields and denting hopes of rate cut. We expect market volatility to heighten as we approach the general election outcome,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Friday as investors looked out for key economic data across the region.

Japan’s Nikkei 225 gained 0.23%, while the Topix index rose nearly 0.7%. South Korea’s Kospi rallied 1.07%, and Kosdaq rose 0.73%. Hong Kong’s Hang Seng index futures indicated to a lower opening.

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Gift Nifty Today

Gift Nifty was trading around 22,700 level, a premium of nearly 70 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

The US stock market ended lower on Thursday, with the Nasdaq falling more than 1% dragged by selling in and technology shares.

The Dow Jones Industrial Average dropped 330.06 points, or 0.86%, to 38,111.48, while the S&P 500 fell 31.47 points, or 0.60%, to end at 5,235.48. The Nasdaq Composite closed 183.50 points, or 1.08%, lower at 16,737.08. 

Among stocks, Salesforce share price plunged 19.7%, while Dell Technologies shares fell more than 12% after the close. 

During the regular session, HP shares jumped 17% on better-than-expected second-quarter revenue and Tesla shares rose 1.5%. Best Buy shares gained 13.4%, while Kohl’s plunged 22.9%.

Also Read: Wall Street today: US stocks slide after revised Q1 economy data, Treasury yields dip

US GDP

The US economy grew at a slower pace in the first quarter than previously estimated after downward revisions to consumer spending and a key measure of inflation ticked down. Gross domestic product grew at an 1.3% annualized rate from January through March, down from the advance estimate of 1.6% and notably slower than the 3.4% pace in the final three months of 2023.

Jobless Claims

The number of Americans filing new claims for unemployment benefits ticked higher last week. Initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 219,000 for the week ended May 25. Economists polled by Reuters had forecast 218,000 claims in the latest week.

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US Fed Officials

US Federal Reserve policymakers continue to expect inflation to fall this year and are in no hurry to cut the policy rates.

Dallas Fed President Lorie Logan said on Thursday she is still worried about upside risks to inflation and warned the US central bank needs to stay “flexible” and keep “all options on the table” as it watches the data and determines how to respond.

“It’s really important that we don’t lock into any particular path for monetary policy,” Logan said at an event. “I think it’s too soon to really be thinking about rate cuts,” she added.

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China PMI

China’s manufacturing activity unexpectedly fell in May, an official factory survey showed. The official purchasing managers’ index (PMI) fell to 49.5 in May from 50.4 in April, below the 50-mark separating growth from contraction and missing a median forecast of 50.4 in a Reuters poll.

Oil Prices

Crude oil prices declined after a surprise build in US gasoline stocks and comments from US Fed officials that it was too soon to start considering rate cuts.

Brent futures fell 0.16% to trade at $81.73 a barrel, while US West Texas Intermediate (WTI) crude declined 0.24% to $77.72.

Dollar

The dollar licked wounds against peer currencies on Friday after a downward revision to the US GDP suggested room for rate cuts this year, Reuters reported. The dollar index, which measures the currency against six major peers, last consolidated around 104.76 after dipping as low as 104.63 overnight.

(With inputs from Reuters)

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Published: 31 May 2024, 07:07 AM IST