Indian stock market: 7 key things that changed for market overnight - Gift Nifty, US producer price index to oil prices

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open higher on Wednesday following a positive momentum in global markets.

Asian markets traded higher, while the US stock market rallied overnight after soft economic data reinforced bets of an interest-rate cut by the US Federal Reserve in September.

Traders now see a 55% chance of a 50-basis-point rate cut by the US central bank, from less than 50% earlier, according to CME's FedWatch Tool.

On Tuesday, the Indian stock market indices ended sharply lower amid foreign fund outflows and mixed trends in global markets.

The Sensex dropped 692.89 points, or 0.87%, to close at 78,956.03, while the Nifty 50 settled 208.00 points, or 0.85%, lower at 24,139.00.

“Domestic equities succumbed to global headwinds surrounding geopolitical uncertainty and cautiousness ahead of US inflation data. Healthy macro data back home failed to provide much-needed support. We expect the market to continue its consolidation mode due to the lack of any major positive trigger. However, investors should use this dip as a buying opportunity in quality stocks especially large-cap where valuations are still comfortable,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Wednesday following an overnight rally on Wall Street.

Japan’s Nikkei 225 gained 0.98%, while the Topix rose 0.72%. South Korea’s Kospi rallied 1.1%, while the Kosdaq jumped 1.4%. Hong Kong Hang Seng index indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 24,235 level, a premium of nearly 75 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended higher on Tuesday, hitting a near two-week high, as softer producer prices data increased bets of a Fed rate cut.

The Dow Jones Industrial Average rallied 408.63 points, or 1.04%, to 39,765.64, while the S&P 500 jumped 90.04 points, or 1.68%, to end at 5,434.43. The Nasdaq Composite closed 407.00 points, or 2.43%, higher at 17,187.61.

Nvidia shares surged 6.5%, Intel stock price spiked 5.7%, Tesla share price jumped 5.24% and Advanced Micro Devices shares gained 3.2%

Starbucks shares jumped 24.5% and Chipotle shares fell 7.5%. Home Depot stock price gained 1.2%, and BuzzFeed share price climbed 25.9%.

US Producer Prices

US producer prices increased less than expected in July. The producer price index for final demand gained 0.1% last month after rising by an unrevised 0.2% in June. In the 12 months through July, the PPI increased 2.2% after climbing 2.7% in June. Economists polled by Reuters had forecast the PPI gaining 0.2%.

Oil Prices

Crude oil prices rose on estimates about shrinking US crude and gasoline inventories.

Brent crude futures rose 0.50% to $81.09 a barrel, while US West Texas Intermediate crude increased by 0.63% to $78.84 per barrel.

Treasury Yields

US Treasury yields fell in line with speculation of monetary policy easing. The benchmark 10-year Treasury yield slipped to 3.8484%, while the two-year Treasury yield fell to 3.9398%.

Dollar

The dollar remained on the back foot after tumbling versus major peers overnight. The dollar index - which measures the currency against six major rivals, including sterling, the euro and the yen - was steady at 102.63 after slumping 0.49% overnight, Reuters reported. Sterling was steady at $1.2866 and the euro was flat at $1.0996. The dollar was stable at 147.06 yen.

(With inputs from Reuters)

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