Indian stock market: 10 key things that changed for market over weekend - Gift Nifty, US inflation to India GDP

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open on a muted note Monday following mixed trends in global markets.

Asian markets traded mixed, while the US stock market closed with strong gains last week after fresh economic data raised expectations of the US Federal Reserve rate cut in September.

Money markets suggest traders mostly expect the Fed to cut rates by 25 basis points (bps) in September, with odds of a 50 bps cut dimming further after Friday’s data, according to CME Group’s FedWatch Tool.

On Friday, the Indian stock market ended higher with the benchmark Nifty 50 hitting a fresh record high, continuing its upward momentum for the 12th consecutive session.

The Sensex gained 231.16 points, or 0.28%, to close at 82,365.77, while the Nifty 50 settled 83.95 points, or 0.33%, higher at 25,235.90.

“We expect the market to continue its northbound journey with stock-specific action. Global macro data which will be released during the week will continue to provide cues to domestic equities. Sector-wise, Auto will remain in focus as OEMs will announce their monthly sales numbers,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Investors will closely monitor key triggers such as domestic and global macroeconomic data, monthly auto sales data, trends in foreign fund inflows, crude oil prices, and other key global cues that will dictate the Indian stock market this week.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed ahead of a slew of economic data releases. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.1%.

Japan’s Nikkei 225 rose 0.94% while the Topix gained 0.49%. South Korea’s Kospi declined 0.49%, and the Kosdaq fell marginally. Hong Kong Hang Seng index indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 25,420 level, a premium of nearly 22 points from the Nifty futures’ previous close, indicating a mildly positive start for the Indian stock market indices.

Wall Street

US stock market ended higher with the Dow scoring a second consecutive all-time closing high on Friday

The Dow Jones Industrial Average gained 0.55% to 41,563.08, while the S&P 500 rallied 1.01% to end at 5,648.40. The Nasdaq Composite Index closed 1.13% higher at 17,713.62.

Nvidia stock price rose 1.5%, Amazon.com and Tesla shares jumped over 3% each, while Broadcom stock price rallied nearly 4%, and Marvell Technology share price surged 9%.

Novavax shares jumped 8.6%, Intel stock price rallied almost 10% and Dell Technologies, another AI-related stock, advanced 4.3%.

US stock market will remain closed on Monday on account of Labor Day.

US Inflation

US personal consumption expenditures (PCE) price index rose 0.2% last month, matching expectations of economists polled by Reuters, after an unrevised 0.1% gain in June. In the 12 months through July, the PCE price index increased 2.5%, matching June’s gain.

Consumer Spending

US consumer spending increased solidly in July, rising 0.5% after advancing by an unrevised 0.3% in June. Economists polled by Reuters had forecast spending would accelerate by 0.5%.

India GDP

Indian economy grew at 6.7% in the April-June quarter, marking the slowest pace in five quarters. This follows a 7.8% expansion in India’s GDP in the previous quarter.

Fiscal Deficit

India’s fiscal deficit in the April-July period of FY25 was at ₹2,76,945 crore, a 17.2% of the full-year target. The deficit stood at 33.9% of the Budget Estimates (BE) in the corresponding period of 2023-24.

GST Collection

India’s Goods and Services Tax (GST) collections in August increased by 10% to ₹1.75 lakh crore compared to ₹1.59 lakh in the same period last year. However, it fell marginally from ₹1.82 lakh crore in July.

F&O Criteria

SEBI has revised the eligibility criteria for entry and exit of stocks in the Futures and Options (F&O) segment. According to the IIFL Alternative, based on the new criteria, a total of 23 stocks are potential candidates for exclusion from the F&O segment.

Japan PMI

Japan’s factory activity contracted at a slower pace in August. The final au Jibun Bank Japan manufacturing purchasing managers’ index (PMI) rose to 49.8 in August versus 49.1 in July, and was up from 49.5 reported in the flash reading.

(With inputs from Reuters)

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