Indian stock market: 10 key things that changed for market overnight - Gift Nifty, Israel-Iran war to SEBI F&O rules

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open lower on Thursday amid mixed cues from global markets and fears of full fledged war between Iran and Israel.

Asian markets were mixed, while the US stock market ended marginally higher overnight led by technology stocks.

Geopolitical tensions in the Middle East escalated after reports after Israel and the US vowed to strike back following Iran’s attack on Israel on Tuesday.

Meanwhile, odds of a quarter-percentage-point rate reduction at the US Federal Reserve's November meeting are at 65.7%, up from 42.6% a week ago, the CME Group’s FedWatch Tool showed.

The Indian stock market was closed on Wednesday on the occasion of Gandhi Jayanti.

On Tuesday, the Indian stock market indices ended the volatile session flat with a negative bias.

The Sensex fell 33.49 points, or 0.04%, to close at 84,266.29, while the Nifty 50 settled 13.95 points, or 0.05%, lower at 25,796.90.

“Global cues are mixed amid a weak outlook from European Auto OEMs and US Fed Chair commentary on the pace of future rate cuts. We expect the market to consolidate with stock-specific action as we enter into the result season and companies will announce pre-quarterly updates,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Thursday following overnight gains on Wall Street.

Japan’s Nikkei 225 rose 2.57%, while the Topix added 2%. Hong Kong’s Hang Seng index futures indicated a slightly lower opening. Markets in China and South Korea are shut for holiday.

Gift Nifty Today

Gift Nifty was trading around 25,725 level, a discount of nearly 250 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.

Wall Street

US stock market ended with modest gains on Wednesday led by gains in technology shares, but investors remain cautious amid Middle East tensions and more US labor data due this week.

The Dow Jones Industrial Average gained 39.55 points, or 0.09%, to 42,196.52, while the S&P 500 rose 0.79 points, or 0.01%, to 5,709.54. The Nasdaq Composite ended 14.76 points, or 0.08%, higher at 17,925.12.

Nvidia stock price rose 1.6%, while Tesla shares fell 3.5%, Humana Inc share price declined 11.8%, while Nike shares closed nearly 7% lower.

Israel - Iran War

Tensions in the Middle East escalated after Iran fired a barrage of missiles at Israel on October 1 and the latter said it began limited ground incursions into Lebanon targeting the Iran-backed Hezbollah militia.

US Private Payrolls

US private payrolls increased more than expected in September. The ADP National Employment Report showed private payrolls increased by 143,000 jobs last month after rising by an upwardly revised 103,000 in August, the report showed. Economists polled by Reuters had forecast private employment would advance by 120,000 positions after a previously reported gain of 99,000 in August.

SEBI F&O Rules

Sebi tightened the rules for equity derivatives trading, raising the entry barrier and making it more costly to trade in the asset class. The regulator Sebi lowered the number of weekly options contracts available to trade for investors to one per exchange and also raised the minimum trading amount nearly three times.

US JOLTS Data

US job openings unexpectedly increased in August after two straight monthly decreases. Job openings rebounded by 329,000 to 8.040 million by the last day of August, the Job Openings and Labor Turnover Survey, or JOLTS report, showed. Economists polled by Reuters had forecast 7.660 million job openings. Hires slipped 99,000 to 5.317 million. Layoffs declined by 105,000 to 1.608 million.

PMI Data

US manufacturing held steady at weaker levels in September. The Institute for Supply Management (ISM) said its manufacturing PMI was unchanged at 47.2 last month. It was the sixth consecutive month that the PMI remained below the 50 threshold, but above the 42.5 level that the ISM said over time generally indicates an expansion of the overall economy, Reuters reported.

Japan’s service sector activity expanded for the third straight month in September. The final au Jibun Bank Service purchasing managers' index (PMI) declined to 53.1 in September from 53.7 in August, according to index publisher S&P Global Intelligence.

Oil Prices

Crude oil prices traded higher amid escalating conflict in the Middle East and the potential for disruption to crude flows.

Brent crude futures rose 0.87% to $74.54 a barrel, while US West Texas Intermediate crude futures rallied 1.03% to $70.82 a barrel.

Currencies

The dollar rose to a one-month high versus the yen on Thursday. The dollar added 0.09% to 146.575 yen after earlier reaching 146.885 for the first time since September 3, Reuters reported.

The dollar index, which measures the currency against the euro, yen and four other top rivals, ticked up to 101.70, a three-week high, extending a 0.45% climb from the previous session.

The euro was little changed at $1.10455, while Sterling was steady at $1.3261.

(With inputs from Reuters)

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