Indian stock market: 10 key things that changed for market overnight – Gift Nifty, US inflation to rally in tech stocks

Indian stock market: The domestic equity market is expected to open lower on Friday following mixed global market cues.

Asian markets traded mixed while the US stocks ended mostly higher overnight after witnessing sharp losses in the previous session. Indian markets were shut on Thursday on account of Eid.

While, the hotter-than-expected US inflation pushed away hopes of a June interest rate cut from the US Federal Reserve, the European Central Bank (ECB) signaled that cooling inflation in the eurozone will soon allow it to commence rate cuts.

On Wednesday, the Indian stock market indices ended with healthy gains amid buying across sectors.

The Sensex surged 354.45 points, or 0.47%, to close at 75,038.15, while the Nifty 50 settled 111.05 points, or 0.49%, higher at 22,753.80.

“We expect the ongoing up-move to continue in the market. The broader market too is likely to continue its outperformance along with stock-specific action on the back of strong domestic flows and healthy business updates. The technology sector is expected to be in focus as TCS will announce its Q4FY24 results on Friday,” 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 mixed on Friday tracking overnight movement on Wall Street and as investors await China trade data.

Japan’s Nikkei 225 rose 0.51% and the Topix gained 0.53%. South Korea’s Kospi fell 0.38%, while the Kosdaq added 0.62%. Hong Kong’s Hang Seng index futures indicated a weaker opening.

Read here: Asian Stocks Edge Higher as Tech Lifts US Equities: Markets Wrap

Gift Nifty Today

Gift Nifty was trading around the 22,675 level, a discount of nearly 130 points from the Nifty futures’ Wednesday’s close, indicating a gap-down start for the Indian stock market indices.

Wall Street

US stocks ended higher on Thursday, rebounding from sharp losses in the previous session, led by a rally in tech-related stocks.

The Dow Jones Industrial Average eased 2.43 points, or 0.01%, to 38,459.08, while the S&P 500 rose 38.42 points, or 0.74%, to 5,199.06. The Nasdaq Composite closed 271.84 points, or 1.68%, higher at 16,442.20.

Amazon share price hit a fresh record high of $189.77 per share. The stock rose 1.7% to close at $189.05, surpassing its previous closing high of $186.57 set in July 2021.

The FANG index of megacap momentum stocks gained 2.6%. CarMax shares plunged 9.2%, while Globe Life share price crashed 53.1%. Rent the Runway shares jumped by 161.9% and Alpine Immune Sciences shares rallied 36.9%.

US Dollar, Treasury Yields

The US dollar hovered near a five-month high at 105.26, along with Treasury yields amid heavily scaled-back bets for a slew of US rate cuts this year.

The benchmark 10-year yield was last at 4.5784%, flirting with a five-month peak of 4.5930% hit in the previous session. The two-year yield eased slightly to 4.9482%, after pushing above 5% for the first time since November on Thursday.

US Inflation

US inflation rose more than expected in March driven by petrol and shelter costs. The US consumer price index (CPI) rose 0.4% sequentially. In the 12 months through March, US inflation increased 3.5% YoY, the biggest gain in six months.

Read here: US inflation beats Wall Street estimates, rises 0.4% in March; Fed’s June rate cut hopes fade away

US Fed Minutes

The minutes of the US Federal Reserve’s latest policy meeting showed that the central bank was preparing in short order to slow the rate at which it sheds Treasury securities from its balance sheet, with policymakers generally favoring cutting the recent pace by roughly half in an effort to extend the process of shrinking holdings and reducing the risk of market trouble.

Read here: US Fed minutes reveal slice in treasury securities from the balance sheet runoff

ECB Policy

The European Central Bank (ECB) kept interest rates at record highs but signaled that it may be preparing to cut them amid easing inflation in eurozone. The central bank for the 20 countries kept its deposit rate at 4.0%, where it has been since September.

Read here: ECB Policy Verdict: At 4%, key interest rates held at all-time high for fifth straight meeting, cuts likely ahead

US Producer Prices

US producer prices increased moderately in March, calming fears of a resurgence in inflation.

The producer price index (PPI) for final demand rose 0.2% last month after increasing by an unrevised 0.6% in February. Economists polled by Reuters had forecast the PPI would gain 0.3%. In the 12 months through March, the PPI advanced 2.1% after rising 1.6% in February.

Jobless Claims

The number of Americans filing new claims for unemployment benefits fell more than expected last week. Initial claims for state unemployment benefits dropped 11,000 to a seasonally adjusted 211,000 for the week ended April 6. Economists polled by Reuters had forecast 215,000 claims in the latest week.

Oil Prices

Crude oil prices rose on Friday amid heightened tensions in the Middle East.

Brent crude futures gained 0.38% to $90.08 a barrel, while US West Texas Intermediate crude futures rallied 0.51% to $85.45.

(With inputs from Reuters)

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