Indian Stock Market: 8 Key Things That Changed Overnight For The Market – Gift Nifty, Chinese Lending Rates To US Stock Rally

Indian Stock Market: Domestic equity indices Sensex and Nifty 50 are expected to open higher on Tuesday following gains in global markets.

Asian markets were higher, while the U.S. stock market rose overnight, led by technology stocks and as investors focused on the Democratic National Convention and the upcoming Jackson Hole Economic Symposium.

Indian equity market indices closed flat on Monday amid profit-taking at higher levels and mixed global signals.

The Sensex lost 12.16 points or 0.02% to close at 80,424.68, while the Nifty 50 closed down 31.50 points or 0.13% to 24,572.65.

“With the first quarter of FY2025 earnings now behind us, domestic equities will be guided by global factors. We expect Nifty to consolidate at higher levels with sectoral rotation. The focus this week will be on the minutes of the FOMC meeting and Fed Chair Powell’s speech at the Jackson Hole Economic Symposium for clues on future interest rate policy,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd.

Here are the key global market signals for Sensex today:

Asian markets

Asian markets traded higher on Tuesday following an overnight rally on Wall Street and the release of key economic data from China.

Japan’s Nikkei 225 rose 1.1 percent, while the Topix gained 0.78 percent. South Korea’s Kospi rose 0.99 percent and the Kosdaq gained 1.19 percent. Futures on Hong Kong’s Hang Seng index pointed to a higher opening.

Give Nifty as a gift today

Gift Nifty was trading at around 24,655, up nearly 65 points from the previous close of Nifty futures, indicating a positive start for Indian stock market indices.

Wall-Street

Led by technology stocks, the U.S. stock market closed higher on Monday, with the S&P 500 and Nasdaq extending their winning streaks to eight consecutive sessions, the longest in 2024.

The Dow Jones Industrial Average gained 236.77 points, or 0.58%, to 40,896.53, while the S&P 500 gained 54 points, or 0.97%, to 5,608.25. The Nasdaq Composite closed 245.05 points, or 1.39%, higher at 17,876.77.

Nvidia shares rose 4.35%, Intel shares gained 3.11%, Microsoft shares rose 0.73% and Alphabet shares gained 2.22%. Advanced Micro Devices shares rose 4.5%, while B. Riley Financial shares fell 5.8% and Palo Alto Networks shares rose 2.7%.

Loan interest rates in China

China left interest rates unchanged on Tuesday at a monthly fixing, in line with market expectations. The one-year benchmark lending rate (LPR) was left at 3.35%, while the five-year LPR remained unchanged at 3.85%.

Oil prices

Crude oil prices fell as concerns about supply disruptions in the Middle East eased.

The October Brent crude contract fell 0.45% to $77.31 a barrel, while September U.S. West Texas Intermediate crude futures fell 0.50% to $74.00 a barrel. Brent was down about 2.5% on Monday, while WTI was down 3%.

Gold price today

Due to the weaker US dollar and US Treasury yields, the price of gold remained above the $2,500 mark.

The spot price of gold rose 0.1% to $2,505.92 an ounce. The price hit an all-time high of $2,509.65 on Friday. US gold futures rose 0.1% to $2,543.90.

Currencies

Reuters reported that the dollar remained near a seven-month low on Tuesday amid expectations that the U.S. Federal Reserve will begin cutting interest rates next month.

The dollar index, which measures the US currency against six competitors, reached its lowest level since January 2 at 101.82. The index lost more than 2 percent in August, making it the second consecutive month in the red.

The euro was last trading at $1.1080, while the pound remained stable at $1.2985. The Japanese yen was stronger at 146.50 against the dollar, moving close to its nearly two-week high.

Yields on US Treasury bonds

US Treasury yields also declined. The yield on the benchmark 10-year US note fell 2.8 basis points to 3.864%, while the yield on the two-year note fell 0.4 basis points to 4.0618%. The yield on the 30-year note fell 4 basis points to 4.1114%.

(With contributions from Reuters)

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