Indian Stock Market: 8 Key Things That Changed Overnight For The Market – Gift Nifty, US Retail Sales For Nasdaq Rally

Indian Stock Market: Domestic equity market indices Sensex and Nifty 50 are likely to open higher on Friday amid a recovery in global markets.

Asian markets rose, while the US stock market ended the night with strong gains after new economic data eased recession fears in the US.

Traders increased their bets on a Federal Reserve rate cut by 25 basis points to 76.5%, compared to 65% before the retail sales release.

On Wednesday, the leading indices of the Indian stock market ended the turbulent session with minor gains.

The Sensex gained 149.85 points or 0.19% to close at 79,105.88, while the Nifty 50 closed 4.75 points or 0.02% higher at 24,143.75.

The Indian stock market was closed on Thursday due to Independence Day 2024.

“We expect the market to consolidate further in the near future and be guided by global factors,” 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 rose on Friday following an overnight rally on Wall Street on strong economic data.

Japan’s Nikkei 225 rose 2.26 percent, while the Topix gained 2.08 percent. South Korea’s Kospi gained 2 percent and the Kosdaq rose 1.53 percent. Hang Seng Index futures in Hong Kong pointed to a higher opening.

Give Nifty as a gift today

Gift Nifty was trading at around 24,320, up nearly 150 points from the previous close of Nifty futures, indicating a positive start for Indian stock market indices.

WallStreet

The U.S. stock market closed higher on Thursday, with the Nasdaq rising more than 2% following U.S. retail sales for July.

The Dow Jones Industrial Average rose 554.67 points, or 1.39%, to 40,563.06, while the S&P 500 rose 88.01 points, or 1.61%, to 5,543.22. The Nasdaq Composite closed 401.90 points, or 2.34%, higher at 17,594.50.

Walmart shares rose 6.58%, while Target and Costco shares also rose 4.35% and 1.69%, respectively. Cisco Systems shares rose 6.8%, Nike shares rose 5.07%, and Ulta Beauty shares gained 11.17%. Tesla shares rose 6.34%.

US retail sales

Retail sales in the United States rose more than expected in July, rising 1.0 percent last month after a downward revision of 0.2 percent in June. Economists polled by Reuters had forecast a 0.3 percent increase in retail sales, after previously reporting unchanged sales.

Unemployment applications

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week. Initial claims for state unemployment benefits fell by 7,000 on a seasonally adjusted basis to 227,000 in the week ended August 10. Economists polled by Reuters had forecast 235,000 claims for last week.

dollar

The dollar hovered near a two-week high against the yen after posting its biggest daily gain against major currencies in four weeks, Reuters reported. The dollar index, which measures the greenback against six major currencies including yen, pound sterling and euro, was little changed at 103.20 after gaining 0.41 percent overnight, the biggest rise since July 18.

The dollar eased slightly to 149.11 yen, while the pound sterling rose slightly to 1.2859 dollars, extending its 0.21 percent gain overnight. The euro was unchanged at 1.0973 dollars, after falling 0.36 percent in the previous session.

Yields on US Treasury bonds

U.S. Treasury yields jumped on Thursday following strong U.S. economic data. The yield on the benchmark 10-year U.S. note rose 10.6 basis points to 3.928%, closing with its biggest absolute gain in a week. The yield on the 2-year note hit its highest since August 2, rising 15.9 basis points to 4.1055%, while the yield on the 30-year note rose 7.7 basis points to 4.1856%.

Oil prices

Crude oil prices were lower in early Asian trading on Friday.

Brent crude futures fell 0.2% to $80.88 a barrel, while U.S. West Texas Intermediate crude futures fell 0.3% to $77.93 a barrel. Brent was expected to gain 1.6% on the week, while WTI was on track for a gain of around 1.5%.

(With contributions from Reuters)

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