Indian stock market: 8 key things that changed for market overnight - Gift Nifty, US stocks rally to jobless claims

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

Asian markets traded higher, while the US stock market jumped overnight after the latest initial jobless claims data eased concerns of US recession.

On Thursday, the Indian stock market benchmark indices ended lower after the announcement of the Reserve Bank of India’s (RBI) monetary policy. The RBI left the key policy repo rate unchanged at 6.5% for the ninth time in a row, while maintaining the stance of ‘withdrawal of accommodation’.

The Sensex declined 581.79 points, or 0.73%, to close at 78,886.22, while the Nifty 50 settled 180.50 points, or 0.74%, lower at 24,117.00.

“Domestic equities failed to sustain at higher levels amid global concern and volatility. Further, continued FII selling dampened the market sentiments. Overall, we expect the market to consolidate and remain sideways amid the lack of any major domestic triggers while global headwinds continue to induce volatility,” 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 Friday tracking overnight rally on Wall Street amid easing recession fears.

Japan’s Nikkei 225 gained 1.63%, while the Topix rose 1.43%. South Korea’s Kospi rallied 1.43%, while the Kosdaq jumped 2.67%. Hong Kong Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 24,385 level, a premium of nearly 265 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.

Wall Street

US stock market ended higher on Thursday, with the Nasdaq and S&P 500 rallying more than 2% each.

The Dow Jones Industrial Average jumped 683.04 points, or 1.76%, to 39,446.49, while the S&P 500 surged 119.81 points, or 2.30%, to 5,319.31. The Nasdaq Composite closed 464.22 points, or 2.87%, higher at 16,660.02.

Nvidia stock price gained 6.13%, while Advanced Micro Devices shares rallied nearly 6%. Intel share price jumped 7.9%, Tesla shares rose 3.69%, while Under Armour shares spiked 19.2%.

In after-hours trading, Paramount Global stock price climbed over 5% and E.l.f. Beauty shares plunged 10%.

US Jobless Claims

The number of Americans filing new applications for unemployment benefits fell more than expected last week.

Initial claims for state unemployment benefits fell 17,000 to a seasonally adjusted 233,000 for the week ended August 3, the largest drop in about 11 months. Economists polled by Reuters had forecast 240,000 claims for the latest week.

US Federal Reserve

US Federal Reserve policymakers are increasingly confident that inflation is cooling enough to allow interest-rate cuts ahead, and they will take their cues on the size and timing of those rate cuts not from stock-market turmoil but from the economic data. That was the shared message of three US central bankers speaking on Thursday, Reuters reported.

Oil Prices

Crude oil prices traded lower on Friday but were on track to gain more than 3% for the week.

Brent crude futures fell 0.23% to $78.98 a barrel, while US West Texas Intermediate crude futures declined 0.24% to $76.01 per barrel. Both Brent and WTI were set to gain more than 3% on a weekly basis.

Dollar

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, gained 0.04% at 103.27. The yen was trading at 147.275 yen against the dollar.

Treasury Yields

The yield on benchmark US 10-year notes rose 2.1 basis points (bps) to 3.988%. The 30-year bond yield rose 1.6 bps to 4.2775%, while the 2-year note yield, which typically moves in step with interest rate expectations, rose 2.9 bps to 4.0297%.

(With inputs from Reuters)

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