Indian stock market: 8 key things that changed for market overnight - Gift Nifty, FOMC minutes to Ratan Tata’s demise

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

Asian markets traded higher, while the US stock market ended with strong gains overnight, with the S&P 500 and the Dow Jones reaching record closing highs.

On Wednesday, the Indian stock market succumbed to profit-taking during the fag end of the session and ended lower after the RBI policy announcement.

The Sensex declined 167.71 points, or 0.21%, to close at 81,467.10, while the Nifty 50 settled 31.20 points, or 0.12%, to close at 24,981.95.

“Markets lost ground in the second half and slipped into the red on selective profit-taking as investors resorted to caution in the run up to the start of the second quarter earnings season. For markets to perform well going ahead, strong conviction is required and earnings season will be the key thing to look out for over the next few weeks,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

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

Japan’s Nikkei 225 gained 0.5%, while the Topix rose 0.4%. South Korea’s Kospi added 0.2%, and the Kosdaq fell 0.2%. Hong Kong Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 25,200 level, a premium of nearly 80 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 Wednesday with the S&P 500 and the Dow Jones scoring record closing highs.

The Dow Jones Industrial Average rallied 431.63 points, or 1.03%, to 42,512.00, while the S&P 500 rose 40.91 points, or 0.71%, to 5,792.04. The Nasdaq Composite closed 108.70 points, or 0.60%, higher at 18,291.62.

Alphabet shares declined 1.5%, while Boeing share price dropped 3.4%. Norwegian Cruise Line stock price jumped 10.9%, Carnival stock surged 7% while Royal Caribbean Cruises shares rallied 5.2%. Arcadium Lithium share price soared 30.9%, while Alibaba Group shares fell 1.6% and PDD Holdings declined 2.3%.

FOMC Minutes

A “substantial majority” of US Federal Reserve officials at the central bank’s September meeting supported beginning an era of easier monetary policy with an outsized half-point rate cut, but there appeared even broader agreement that the initial move would not commit the Fed to any particular pace of rate reductions in the future, according to the minutes of the September 17-18 FOMC meeting.

Ratan Tata Passes Away

Veteran industrialist and Tata Group’s chairman emeritus Ratan Tata passed away on Wednesday night. He was 86. A recipient of Padma Vibhushan breathed his last at south Mumbai’s Breach Candy Hospital.

Japan Wholesale Inflation

Japan’s wholesale prices rose 2.8% in September from a year earlier. The rise in the corporate goods price index (CGPI) exceeded a median market forecast for a 2.3% increase and followed a 2.6% gain in August.

China opens Yuan swap scheme

China’s central bank began accepting applications from financial institutions to join a newly created funding scheme, initially worth 500 billion yuan ($70.62 billion), to aid the capital market, Reuters reported. The People's Bank of China (PBOC) said eligible securities firms, fund companies and insurers can apply to join the swap scheme, which gives them easier access to funding to buy stocks.

Dollar

The US dollar traded near a two-month peak against major peers. The dollar index, which measures the currency against six key rivals, was little changed at 102.86, sticking close to Wednesday's high of 102.93.

The greenback eased 0.18% to 149.035 yen, but was not far from the overnight peak of 146.365. The euro was flat at $1.0939 following its dip to $1.0936 in the previous session, Reuters reported.

(With inputs from Reuters)

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