Indian Stock Market: 8 Key Things That Changed Overnight For The Market – Present Nifty, RBI Minutes For US Treasury Yields

Indian Stock Market: Domestic equity market indices Sensex and Nifty 50 are likely to open subdued on Friday, reflecting weakness in global markets.

Asian markets posted mixed trading results, while the US equity market closed lower overnight due to selling in technology stocks and a rise in US Treasury yields.

Central bank officials from around the world have gathered in Jackson Hole for the annual economic symposium. Investors will be looking to Federal Reserve Chairman Jerome Powell’s speech on Friday for clues about the timing and extent of the Fed’s easing cycle.

Indian stock market indices closed higher on Thursday, with the Nifty 50 closing above the 24,800 mark.

The Sensex closed 147.89 points or 0.18% higher at 81,053.19, while the Nifty 50 closed 41.30 points or 0.17% higher at 24,811.50.

“All eyes will be on Fed Chairman Powell’s speech at the Jackson Hole Symposium tomorrow. Investors will be looking for any hints of rate cuts. Hopes are high for a rate cut at the September meeting, followed by further rate cuts at the subsequent meetings. The market is therefore likely to consolidate in the near term. Sectoral rotation and stock-specific action will play a role in this,” 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 recorded mixed trading on Friday following a sell-off on Wall Street overnight and the release of Japanese inflation data.

Japan’s Nikkei rose 0.2%, while the Topix gained 0.32%. Futures for Hong Kong’s Hang Seng index pointed to a lower opening.

Give Nifty as a gift today

Gift Nifty was trading at around 24,830, a discount of nearly 10 points from the previous close of Nifty futures, indicating a slightly negative start for the Indian stock market indices.

WallStreet

The U.S. stock market closed lower on Thursday, weighed down by a sell-off in technology stocks, while U.S. Treasury yields rose and central bank officials from around the world met for the Jackson Hole Economic Symposium.

The Dow Jones Industrial Average fell 177.71 points, or 0.43%, to 40,712.78, while the S&P 500 fell 50.21 points, or 0.89%, to 5,570.64. The Nasdaq Composite closed 299.63 points, or 1.67%, lower at 17,619.35.

Nvidia shares fell 3.7%, Amazon shares fell 2.21%, Microsoft shares fell 2.03%, while Tesla shares rose 5.65%.

Snowflake shares fell 14.7%, Zoom Video Communications shares rose 13.0%, while Advance Auto Parts shares fell 17.5%.

US unemployment claims

The number of Americans filing new claims for unemployment benefits rose last week. Initial claims for state unemployment benefits rose by 4,000 to a seasonally adjusted 232,000 in the week ended August 17. Economists polled by Reuters had forecast 230,000 claims last week.

US real estate sales

U.S. existing home sales rose more than expected in July, reversing four consecutive monthly declines. Home sales rose 1.3 percent last month to a seasonally adjusted annual rate of 3.95 million units. Economists polled by Reuters had forecast that resales of homes would rise to a rate of 3.93 million units.

Resales of homes, which make up a large portion of U.S. real estate sales, fell 2.5 percent in July from the same period a year earlier. The median price of existing homes rose 4.2 percent from the same period a year earlier to $422,600, Reuters reported.

RBI minutes

All three internal members of the Reserve Bank of India’s Monetary Policy Committee (MPC) panel explained the need to keep food prices within the central bank’s broader inflation target, according to the minutes of the RBI’s last monetary policy meeting on August 8.

Inflation in Japan

Japan’s core inflation rose for the third straight month in July. The nationwide core consumer price index (CPI) rose 2.7 percent from a year earlier, slower than the 2.6 percent increase in June. However, the “core” index, which excludes fresh food and energy costs, rose 1.9 percent after rising 2.2 percent in June, falling below the key 2 percent mark for the first time since September 2022.

Yields on US Treasury bonds

Reuters reported that U.S. Treasury yields rose, recovering from two-week lows hit in the previous trading session. The benchmark 10-year yield rose 8.6 basis points to 3.861%, while 30-year yields rose 8.3 basis points to 4.134% and the two-year yield rose 8.6 basis points to 4.009%.

(With contributions from Reuters)

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