Indian stock market: 7 key things that changed for market overnight - Gift Nifty to US tech stocks sell-off

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open lower on Thursday following a sharp decline in global markets.

Asian markets traded lower, while the US stock market ended with steep cuts amid selloff in technology stocks, triggered by weak earnings from Alphabet and Tesla, that resulted in S&P 500 and Nasdaq recording the worst day since 2022.

On Wednesday, Indian stock market benchmark indices ended lower, extending their losing run into the fourth consecutive session, amid profit booking in select banking and FMCG stocks.

The Sensex fell 280.16 points, or 0.35%, to close at 80,148.88, while the Nifty 50 settled 65.55 points, or 0.27%, lower at 24,413.50.

“Markets experienced some decline after investors' mood turned soured post an unexpected increase in short and long-term capital gains. With markets at new highs, the budget further strengthens India’s macroeconomic position amid a fragile global economy. We anticipate the market to quickly discount the budget and shift its focus to the trajectory of corporate earnings growth, which has remained marginally below our expectations so far in 1QFY25. Thus, we expect the market to consolidate in the near term,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets plunged following overnight losses on Wall Street, with Japan’s Nikkei extending its six-day losing streak.

Japan’s Nikkei 225 tanked 2.64%, while the Topix tumbled 2.24%. South Korea’s Kospi declined 1.8%, while the Kosdaq dropped 2.32%. Hong Kong Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 24,310 level, a discount of nearly 210 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.

Wall Street

US stock market ended sharply lower on Wednesday, with the S&P 500 and Nasdaq closing at multi-week lows. The Nasdaq Composite also posted its largest single-day percentage decline since October 2022 to finish at its lowest point since June 10.

The Dow Jones Industrial Average declined 504.22 points, or 1.25%, to 39,853.87, while the S&P 500 dropped 128.61 points, or 2.31%, to 5,427.13. The Nasdaq ended 654.94 points, or 3.64%, lower at 17,342.41.

Tesla shares slumped 12.3% in its worst single-day fall since September 2020, while Google parent Alphabet share price dropped 5%, to its worst finish since May 31. Visa stock price also declined 4%

AT&T shares gained 5.2%, while Enphase Energy stock jumped 12.8%. Roper Technologies dropped 7.4%.

Tech stocks sell-off

Disappointing earnings from Alphabet and Tesla led a selloff in US megacap technology stocks resulting in the Nasdaq Composite posting its largest single-day percentage decline since October 2022 to finish at its lowest point since June 10.

Alphabet shares slid 5%, while Tesla shares plunge 12% in the worst single-day drop since 2020. Other megacaps, Apple, Microsoft, Amazon.com, Meta Platforms and Nvidia shares, all closed lower between 2.9% and 6.8%.

Currencies

The dollar index, which measures the greenback against a basket of six currencies, including the yen and the euro, fell 0.12% to 104.35. The Japanese yen rose more than 0.5% to 152.835 per dollar. Sterling fell 0.09% to $1.2895, while the euro fell 0.02% to $1.0837.

Gold Prices

Gold prices were flat as investors waited for US economic data for cues on the central bank’s interest rate cuts timing. Spot gold was unchanged at $2,398.17 per ounce, while US gold futures fell 0.8% to $2,397.40.

Oil Prices

Crude oil prices traded lower. Brent crude oil fell 0.40% to $81.38 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.37% to $77.30.

(With inputs from Reuters)

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