Indian stock market: 10 key things that changed for market overnight - Gift Nifty, US Fed rate cut to Wall Street rally

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open flat on Friday amid positive global market cues.

Asian markets traded higher, while the US stock market rallied overnight, with the S&P 500 and Nasdaq posting record closing highs.

The US Federal Reserve decided to cut interest rates by 25 basis points (bps), boosting the Wall Street rally, which was earlier fueled by the US election results, with Donald Trump set to become the next US president.

On Thursday, the Indian stock market benchmark indices ended in deep red as the optimism from the ‘Trump trade’ rally, which had followed the former President's victory in the US presidential election 2024, failed to sustain its momentum.

The Sensex cracked 836.34 points, or 1.04%, to close at 79,541.79, while the Nifty 50 settled 284.70 points, or 1.16%, lower at 24,199.35.

“After the initial euphoria post Donald Trump’s win in the presidential polls, the focus is back on the fundamentals. Unabated foreign fund outflows are denting investor sentiment. Subdued September quarter results continue to weigh on domestic markets,” 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 Tuesday tracking overnight rally on Wall Street fueled by the US Federal Reserve interest rate cut of 25 basis points (bps).

Japan’s Nikkei 225 rose 0.74%, while the Topix gained 0.49%. South Korea’s Kospi rallied nearly 1%, and the Kosdaq jumped 1.71%. Hong Kong’s Hang Seng index futures indicated a stronger opening.

Gift Nifty Today

Gift Nifty was trading around 24,290 level, a discount of nearly 10 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.

Wall Street

US stock market ended higher on Thursday, boosted by a 25 bps interest rate cut by the Federal Reserve, extending a sharp rally sparked by Donald Trump’s return as US president.

The Dow Jones Industrial Average ended flat at 43,729.34, while the S&P 500 rose 44.06 points, or 0.74%, to 5,973.10. The Nasdaq Composite ended 285.99 points, or 1.51%, higher at 19,269.46.

Warner Bros Discovery shares jumped 11.81%, while JP Morgan stock price declined 4.32% and Goldman Sachs shares fell 2.32%.

US Fed Rate Cut

The US Federal Reserve decided to cut the benchmark interest rate by 25 basis points (bps) to 4.50% - 4.75%, broadly in line with Wall Street estimates, as policymakers took note of a job market that has “generally eased” while inflation continues to move toward the US central bank’s 2% target.

BOE Rate Cut

The Bank of England cut interest rates and said future reductions were likely to be gradual as it predicted higher inflation and economic growth. The Monetary Policy Committee voted 8-1 to cut rates to 4.75% from 5%. Analysts polled by Reuters had expected a 7-2 vote.

US Jobless Claims

The number of Americans filing new applications for unemployment benefits rose marginally last week. Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 221,000 for the week ended November 2. Economists polled by Reuters had forecast 221,000 claims for the latest week.

China dollar bond issuance

China has mandated investment banks to work on a three- and five-year dollar bond issuance, according to a term sheet reviewed by Reuters on Friday. The issuance will be senior, unsecured fixed rate bonds subject to market conditions, the term sheet said, Reuters reported.

Japan’s Household Spending

Japanese household spending fell in September for the second straight month. Consumer spending fell 1.1% from the year earlier, against the median market forecast for a 2.1% decline. On a seasonally adjusted, month-on-month basis, it fell 1.3%, versus an estimated 0.7% drop.

Dollar, Treasury Yields

The dollar took a breather on Friday, on track to cap off a wild week with a slight gain. Against a basket of currencies, the dollar ticked up 0.03% to 104.44, on track to gain just above 0.1% for the week, Reuters reported.

US Treasury yields dropped across the board after the Fed rate cut. The benchmark 10-year yield fell 11 bps to 4.33%, its largest one-day fall in three months. The US two-year yield fell 6.9 bps at 4.218%, its biggest daily decline in two months.

Gold Prices

Gold prices traded higher on Friday. Spot gold rose 0.1% to $2,708.89 per ounce, but was down nearly 1% for the week so far. US gold futures gained 0.4% to $2,716.4.

(With inputs from Reuters)

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