Indian Stock Market: 8 Key Things That Changed Overnight For The Market – Gift Nifty, US Stocks Rise On Jobless Claims

Indian Stock Market: Domestic equity market indices Sensex and Nifty 50 are expected to open higher on Friday after a rally on the back of positive sentiment in global markets.

Asian markets were higher, while the US stock market jumped overnight after recent initial jobless claims data eased fears of a US recession.

On Thursday, India’s key indices closed lower following the Reserve Bank of India’s (RBI) monetary policy announcement. The RBI left the key interest rate unchanged at 6.5% for the ninth consecutive month, but insisted on “reversing easing measures.”

The Sensex lost 581.79 points or 0.73% to close at 78,886.22, while the Nifty 50 was 180.50 points or 0.74% lower at 24,117.00.

“Domestic equities have failed to sustain elevated levels amid global concerns and volatility. Moreover, ongoing selling in foreign securities has dampened market sentiment. Overall, we expect the market to consolidate and remain flat in the absence of any major domestic triggers while global headwinds continue to create volatility,” 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 were higher on Friday, following an overnight rally on Wall Street amid easing recession fears.

Japan’s Nikkei 225 gained 1.63 percent, while the Topix rose 1.43 percent. South Korea’s Kospi climbed 1.43 percent, while the Kosdaq gained 2.67 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 24,385, a premium of nearly 265 points over the previous close of Nifty futures, indicating a gap-up start in Indian stock market indices.

WallStreet

The U.S. stock market closed higher on Thursday, with the Nasdaq and S&P 500 each up more than 2 percent.

The Dow Jones Industrial Average rose 683.04 points, or 1.76%, to 39,446.49, while the S&P 500 gained 119.81 points, or 2.30%, to 5,319.31. The Nasdaq Composite closed 464.22 points, or 2.87%, higher at 16,660.02.

Nvidia stock price gained 6.13%, while Advanced Micro Devices shares gained nearly 6%. Intel stock price jumped 7.9%, Tesla shares rose 3.69%, while Under Armour shares gained 19.2%.

In after-hours trading, Paramount Global’s share price rose over 5%, while Elf Beauty’s shares fell 10%.

US unemployment claims

The number of Americans filing new claims for unemployment benefits fell more than expected last week.

The number of initial claims for state unemployment benefits fell by 17,000 to 233,000 in the week ending August 3, a seasonally adjusted figure. This is the sharpest decline in around eleven months. Economists surveyed by Reuters had forecast 240,000 claims for last week.

US Federal Reserve

Federal Reserve policymakers are increasingly confident that inflation will cool sufficiently to allow interest rate cuts. They will base the amount and timing of these rate cuts not on the turmoil in the stock markets but on economic data. That was the common message of three US central bankers in their speech on Thursday, Reuters reported.

Oil prices

Crude oil prices were lower on Friday but are expected to rise by more than 3% over the course of the week.

Brent crude futures fell 0.23% to $78.98 a barrel, while U.S. West Texas Intermediate crude futures fell 0.24% to $76.01 a barrel. Both Brent and WTI are expected to gain more than 3% on a weekly basis.

dollar

The dollar index, which measures the greenback against a basket of currencies including the yen and euro, rose 0.04 percent to 103.27. The yen traded at 147.275 yen against the dollar.

Yields on US Treasury bonds

The yield on 10-year U.S. benchmark bonds rose 2.1 basis points to 3.988 percent. The yield on 30-year bonds rose 1.6 basis points to 4.2775 percent, while the yield on 2-year bonds, which typically moves in line with interest rate expectations, rose 2.9 basis points to 4.0297 percent.

(With contributions from Reuters)

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