Indian stock market: 8 key things that changed for market overnight - Gift Nifty, RBI minutes to US treasury yields

Indian stock market: The domestic stock market indices, Sensex and Nifty 50, are expected to open on a muted note Friday tracking weakness in global markets.

Asian markets traded mixed, while the US stock market ended lower overnight amid selling in technology stocks and a spike in Treasury yields.

Central bank officials from around the world have gathered in Jackson Hole for the annual Economic Symposium. Investors will be focused on US Federal Reserve Chairman Jerome Powell’s address on Friday for clues on the timing and extent of the Fed's policy easing cycle.

On Thursday, the Indian stock market indices ended higher, with the Nifty 50 closing above the 24,800 level.

The Sensex ended 147.89 points, or 0.18%, higher at 81,053.19, while the Nifty 50 settled 41.30 points, or 0.17%, higher at 24,811.50.

“All eyes will be on tomorrow’s US Fed Chair Powell's speech at the Jackson Hole Symposium. Investors would look for hints on interest rate cuts. Hopes are running high for a rate cut in the September meeting followed by more rate cuts in subsequent meets. The market thus is likely to consolidate in the near term. While sectorial rotation and stock-specific action will be at play,” 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 mixed on Friday following a sell-off on Wall Street overnight and the release of Japan’s inflation data.

Japan’s Nikkei rose 0.2%, while the Topix climbed 0.32%. Hong Kong Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 24,830 level, a discount of nearly 10 points from the Nifty futures’ previous close, indicating a mildly negative start for the Indian stock market indices.

Wall Street

US stock market ended lower on Thursday weighed down by selling in technology shares as Treasury yields rose and global central bank officials convened at the Jackson Hole Economic Symposium.

The Dow Jones Industrial Average declined 177.71 points, or 0.43%, to 40,712.78, while the S&P 500 dropped 50.21 points, or 0.89%, to 5,570.64. The Nasdaq Composite ended 299.63 points, or 1.67%, lower at 17,619.35.

Nvidia stock price fell 3.7%, Amazon shares declined 2.21%, Microsoft share price dropped 2.03%, while Tesla stock price cracked 5.65%.

Snowflake shares plunged 14.7%, Zoom Video Communications share price jumped 13.0%, while Advance Auto Parts stock price tumbled 17.5%.

US Jobless Claims

The number of Americans filing new applications for unemployment benefits rose in the latest week. Initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 232,000 for the week ended August 17. Economists polled by Reuters had forecast 230,000 claims for the latest week.

US Home Sales

US existing home sales rose more than expected in July, reversing four consecutive monthly declines. Home sales rose 1.3% last month to a seasonally adjusted annual rate of 3.95 million units. Economists polled by Reuters had forecast home resales would edge up to a rate of 3.93 million units.

Home resales, which account for a large portion of US housing sales, declined 2.5% on a year-on-year basis in July. The median existing home price jumped 4.2% from a year earlier to $422,600, Reuters reported.

RBI Minutes

All three internal members of the Reserve Bank of India’s Monetary Policy Committee (MPC) panel elaborated on the need to retain food prices within the central bank’s broader inflation target, show the minutes of the RBI’s latest policy meeting on August 8.

Japan Inflation

Japan’s core inflation accelerated for a third straight month in July. The nationwide core consumer price index (CPI) rose 2.7% from a year earlier, slower than a 2.6% climb in June. But the “core core” index, which excludes fresh food and energy costs, rose 1.9% after increasing 2.2% in June. It dipped below the key 2% line for the first time since September 2022.

US Treasury Yields

US Treasury yields rose, recovering from two-week lows hit the previous session, Reuters reported.. The benchmark 10-year yield rose 8.6 bps to 3.861%, while the 30-year yields climbed 8.3 bps to 4.134% and the two-year yield advanced 8.6 bps to 4.009%.

(With inputs from Reuters)

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