Indian stock market: 5 key things that changed for market overnight- Gift Nifty, global trends to tariff concerns

Indian stock market: The domestic market benchmark indices are anticipated to have a positive opening on Wednesday's trade with GIFT Nifty up more than 185.5 points from Tuesday's close on Nifty Futures amid mixed global cues.

Stocks in Asia traded within a narrow range after Donald Trump’s tariff plan caused turbulence in emerging markets during the previous session. The MSCI Asia Pacific Index rose by 0.1%, with equities increasing in Sydney, while experiencing declines in Tokyo and Seoul.

Indian stock indices were mostly steady on Tuesday, interrupting the upward trend seen in the previous two sessions. The Sensex closed at 80,004.06 points, declining by 105.79 points or 0.13%. Meanwhile, the Nifty 50 settled at 24,194.50 points, down 27.40 points or 0.11%.

The recent rally, excluding Tuesday's session, has helped recover some of the losses experienced recently, with indices gaining nearly 4% over the past two days.

“The domestic market took a pause after the recent strong rally; however, the broader market remained agile. FIIs have turned net buyers, breaking a long streak of selling, with MSCI rebalancing. With the end of state elections in 2024, the government focus will be on execution and fulfilling the budget plans,” said Vinod Nair, Head of Research, Geojit Financial Services.

Here are key global market cues for Nifty 50 and Sensex today:

Gifty Nifty

The domestic market benchmark indices are expected to open positively on Wednesday, with the GIFT Nifty rising more than 185.5 points from Tuesday's close on Nifty Futures, amid mixed signals from global markets.

Asian Markets

Asian equities are struggling, according to Rajeev De Mello, a global macro portfolio manager at Gama Asset Management, as reported by Bloomberg. Investors believe that the swift announcement of tariffs on China, primarily related to the export of fentanyl to the US, may be just the first step towards implementing higher tariffs for other reasons. This ongoing uncertainty is likely to exert continued pressure on Asian markets.

Wall Street

US stocks reached record highs on Tuesday, despite Donald Trump's recent comments about tariffs causing only minor reactions on Wall Street. Even though these tariffs could potentially disrupt the global economy if implemented, the market remained largely unaffected.

The S&P 500 rose by 0.6%, surpassing the all-time high it reached a couple of weeks ago. The Dow Jones Industrial Average increased by 123 points, or 0.3%, setting a new record just a day after its previous high. Meanwhile, the Nasdaq composite gained 0.6%, with Microsoft and other major tech companies driving the increase.

In contrast, stock markets abroad mostly declined following a statement from President-elect Trump, who announced plans to impose significant new tariffs on Mexico, Canada, and China once he takes office, according to an AP news report.

US Dollar

The dollar experienced gains, while stock prices faced some decline following President-elect Donald Trump's announcement of additional tariffs on China, Mexico, and Canada. This development has prompted discussions about the implications of his "America First" policies, as noted in a Bloomberg report.

The Bloomberg Dollar Spot Index initially rose by up to 0.7% before adjusting, and the Chinese offshore yuan reached a four-month low. Additionally, both the Mexican peso and the Canadian dollar saw drops exceeding 1%. However, it is worth noting that US stock futures began to stabilize after earlier fluctuations, indicating potential resilience in the market.

Crude Oil

According to Reuters report, Oil prices showed stability in early trading on Wednesday as markets evaluated the potential consequences of a ceasefire agreement between Israel and Hezbollah, while also preparing for the upcoming OPEC meeting this Sunday.

Brent crude futures experienced a slight decline, dropping 2 cents to settle at $72.79 a barrel by 0114 GMT. Meanwhile, U.S. West Texas Intermediate crude futures were also down by 4 cents, or 0.1%, now priced at $68.73 a barrel.

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