Indian stock market: 7 key things that changed for market overnight – Gift Nifty, US GDP to Alphabet stock soars

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to have a positive start on Friday with GIFT Nifty up more than 24 points from Thursday’s close on Nifty Futures and tracking mixed global cues.

On Thursday, the Indian stock market benchmarks indices ended higher for the fifth consecutive session despite weak global cues.

The Sensex rallied 486.50 points, or 0.66%, to close at 74,339.44, while the Nifty 50 settled 167.95 points, or 0.75%, higher at 22,570.35.

Also Read: Nifty 50 rises nearly 1%; why did the Indian stock market gain today?-explained

“Investors placed more bullish bets on the monthly F&O expiry day, which saw benchmark indices rally for the fifth straight session led by gains in frontline banking and metal stocks. Even the fall in other Asian and European indices and US Dow Futures witnessing a sharp fall too didn’t deter local investors. FIIs fund outflows have been a concern area but India’s strong growth prospects and hopes of a majority win for the ruling party in the upcoming elections has been drawing a lot of domestic investors to take exposure to equities,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — April 26

Here are key global market cues for Sensex today:

Asian Markets

Shares in Asia opened mixed following a decline on Wall Street on Thursday.

In Friday’s opening trading, South Korean stocks rose while Japanese stocks were mixed. Due to BHP Group Ltd.’s negative impact, Australian equities declined. Friday’s opening bell saw a rise in Hong Kong stocks as a result of strong results from tech giants Microsoft and Alphabet.

The Hang Seng Index increased by 51.66 points, or 0.30%, to 17,336.20. While the Shenzhen Composite Index on China’s second exchange decreased by 0.13%, or 2.24 points, to 1,696.09, the Shanghai Composite Index increased by 0.07%, or 2.08 points, to 3,054.98.

Also Read: Stock market today: Trade setup for Nifty 50 to Sensex, 7 stocks to buy or sell on Friday — April 26

Gift Nifty Today

Gift Nifty was trading around 22,670.00 level, a premium of nearly 24.65 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US equities ended a three-day winning run on Thursday, according to a Reuters, as the tech industry was battered by disappointing projections from Meta, the owner of Facebook and Instagram. Equities were impacted by tepid US GDP data and Meta’s decline.

The S&P 500 dropped 23.21 points, or 0.46%, to 5,048.42, the Nasdaq Composite lost 100.99 points, or 0.64%, to 15,611.76, and the Dow Jones Industrial Average slid 375.12 points, or 0.98%, to 38,085.80.

After both Alphabet and Microsoft reported quarterly earnings that exceeded Wall Street expectations, their stocks rose during after-hours trading. However, after Intel predicted second-quarter revenue and profit below market projections, the company’s shares fell 8% during after-hours trading.

Also Read: Gold prices down $100 from record-high on uptick in US Treasury yields; Q1GDP lowers Fed rate cut hopes

US GDP Growth

The US economy grew last quarter at the slowest pace in two years. The US gross domestic product (GDP) increased at a 1.6% annualized rate in January-March 2024, missing Wall Street expectations of a larger 2.4% rise seen in the quarter-under-review. The growth was also a slowdown from the 3.4% increase in the final three months of last year.

Read here: US Q1 GDP: At 1.6%, US economy grows at slowest pace in 2 years, misses estimates on sharp uptick in core inflation

US Inflation

US inflation, as measured by the personal consumption expenditures (PCE) price index, came in at 3.7% in the first quarter, above expectations for a 3.4% increase and well above the US Federal Reserve’s 2% target.

Treasury Yields

US Treasury yields hit more than five-month highs after data showed that a measure of inflation rose more than expected in the first quarter.

The benchmark 10-year Treasury note yields hit 4.739%, the highest since November 2, and were last up 5 basis points (bps) at 4.704%. Two-year yields got as high as 5.027%, the highest since November 14.

US Tech Earnings

As per Bloomberg, Alphabet Inc. announced first-quarter revenue that above the forecasts of analysts, driven by expansion in its cloud computing division.

According to Bloomberg data, the Google parent company’s sales for the three months ending March 31 were $67.6 billion, above the average of $66.1 billion predicted by experts. This amount did not include partner rewards. Wall Street had predicted that net income would be $1.53 per share; nevertheless, it was $1.89 per share.

Also Read: Alphabet Q1 Results: Google parent company records revenue at $67.6 billion

In addition, the business said that it will repurchase an extra $70 billion in shares and pay its first-ever dividend of 20 cents per share. The shares jumped 13% in extended trading.

Microsoft Corp. announced on April 25 that its third-quarter revenue soared to $61.9 billion, marking a 17% increase, and profits reached $2.94 per share, exceeding the average analyst estimates of $2.83 on sales of $60.9 billion as of March 31. The results, driven by robust corporate demand for its cloud and AI offerings, sparked a late trading surge in shares, as per Bloomberg.

Also Read: Microsoft basks in AI glory, revenue up 17% to $61.9 billion

On the other side, The largest manufacturer of processors for personal computers, Intel Corp, fell in late trade after providing a drab estimate for the current quarter, suggesting that it is still having difficulty rising to the top of the semiconductor market.

The business stated in a statement on Thursday that sales in the second quarter will be around $13 billion. According to information gathered by Bloomberg, it contrasts with an average analyst expectation of $13.6 billion. After deducting certain things, profit per share will be 10 cents instead of the projected 24 cents.

Also Read: Meta COO Javier Olivan offloads portion of his holdings at $245,578; stock down 13% over costly AI bet

(With inputs from Agencies)

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