Indian stock market: 8 key things that changed for market overnight - Gift Nifty, US inflation, to surging dollar

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open on a cautious note following mixed cues from global markets and a surge in US dollar index.

Asian markets traded mixed tracking similar trend in US stock market overnight after the consumer price data. US inflation reading fueled expectations for the US Federal Reserve to cuts rates again in December.

Traders raised their odds for a 25 basis points (bps) Fed rate cut to about 82% from just 59% a day earlier, according to the CME Group’s FedWatch gauge.

On Wednesday, the Indian stock market extended decline for the fifth straight session, dragged by weak global cues, a surge in US dollar index and unabated selling by foreign investors.

The Sensex plunged 984.23 points, or 1.25%, to close at 77,690.95, while the Nifty 50 settled 324.40 points, or 1.36%, lower at 23,559.05.

“With inflation once again rising sharply and breaching above the RBI's comfort level, receding hopes of any major rate cuts in the near future by the central bank put the markets into a tizzy. Also, relentless FII selling in local equities, along with rising US bond yields and dismal corporate earnings show has prompted overseas investors to park their funds in relatively cheaper markets like China,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Thursday following similar trend overnight on Wall Street after the US October inflation data.

Japan’s Nikkei 225 rose 0.74%, while the Topix gained 0.58%. Hong Kong’s Hang Seng index futures indicated a weak opening.

Gift Nifty Today

Gift Nifty was trading around 23,630 level, a discount of nearly 28 points from the Nifty futures’ previous close, indicating a weak start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Wednesday after the release of inflation data which was in-line with estimates.

The Dow Jones Industrial Average gained 47.21 points, or 0.11%, to 43,958.19, while the S&P 500 rose 1.39 points, or 0.02%, to 5,985.38. The Nasdaq Composite ended 50.66 points, or 0.26%, lower at 19,230.74.

Nvidia stock price fell 1.3%, while Amazon shares rallied 2.5%. Spirit Airlines share price plunged 59%, while Rivian stock price jumped 13.7%.

US Inflation

US consumer prices increased as expected in October. The consumer price index (CPI) rose 0.2% for the fourth straight month. In the 12 months through October, the CPI advanced 2.6% after climbing 2.4% in September. Economists polled by Reuters had forecast the CPI gaining 0.2% and increasing 2.6% year-on-year.

Bitcoin Prices

Bitcoin prices hit a record high, surpassing $93,000 as US president-elect Donald Trump pledged to ease regulation around digital tokens. The world’s biggest cryptocurrency has rocketed more than 30% in value since Trump won US presidential election last week.

Gold Prices

Gold prices traded flat after hitting a two-month low earlier, pressured by a stronger US dollar.

Spot gold was flat at $2,573.73 per ounce, after hitting its lowest level since September 19, while US gold futures fell 0.3% at $2,578.00.

Dollar

The US dollar revisited a one-year high against major peers, as a fourth straight winning session, Reuters reported. The US dollar index, which measures the currency against six top counterparts including the euro and yen, added 0.1% to 106.55, having earlier touched 106.56 for the first time since November of last year.

Oil Prices

Crude oil prices fell slightly on Thursday on amid weak demand growth concerns and a firmer dollar.

Brent crude futures fell 0.08% to $72.22 a barrel, while US West Texas Intermediate crude (WTI) futures declined 0.19% to $68.30.

(With inputs from Reuters)

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