Indian stock market: 6 key things that changed for market overnight – Gift Nifty, US Treasury yields to gold prices

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open flat on Wednesday tracking mixed global market sentiment. Uncertainty over US Presidential elections 2024, Middle East conflicts, weak Q2 results 2024, and sustained FII selling have led to a sharp correction in the Indian stock market.

Asian markets traded mixed, while the US stock market closed little changed overnight as Treasuries yields spiked.

On Tuesday, the Indian stock market indices succumbed to a strong wave of selloff and ended sharply lower by over a percent each.

The Sensex crashed 930.55 points, or 1.15%, to close at 80,220.72, while the Nifty 50 settled 309.00 points, or 1.25%, lower at 24,472.10.

“Rising US bond yields amid expectation of a modest rate cut by the US Federal Reserve led to weakness in global markets and outflow of funds from emerging markets like India. Q2 earnings are also showing signs of moderation which dented the sentiments. Overall, we expect pressure to continue in the market driven by result oriented action. However, investors can follow a buy on dip strategy to accumulate quality stocks,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Wednesday, reflecting subdued risk appetite.

Japan’s Nikkei 225 was flat, while the Topix fell marginally. South Korea’s Kospi rose 0.25%, and the Kosdaq gained 0.51%. Hong Kong’s Hang Seng index futures indicated a stronger open.

Gift Nifty Today

Gift Nifty was trading around 24,540 level, a premium of nearly 2 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.

Wall Street

US stock market ended flat, with the Nasdaq seeing a modest gain, while Treasury yields spiked.

The Dow Jones Industrial Average eased 6.71 points, or 0.02%, to 42,924.89, while the S&P 500 fell 2.78 points, or 0.05%, to 5,851.20. The Nasdaq Composite ended 33.12 points, or 0.18%, higher at 18,573.13.

GE Aerospace stock price slumped 9%, while Microsoft shares gained 2.08%. Verizon stock declined 5.03% and 3M share price fell 2.31%. General Motors stock jumped 9.81%, while Lockheed Martin shares dropped 6.12%.

Gold Prices

Gold prices surged to a record high amid the Middle East conflicts and uncertainty surrounding the upcoming US Presidential Elections.

Spot gold was little changed at $2,746.25 per ounce, after hitting its highest level at $2,749.07 earlier in the session, while US gold futures rose 0.1% to $2,761.4.

Oil Prices

Crude oil prices fell after data showed US crude inventories had swelled more than expected.

Brent crude futures declined 0.4% to $75.73 a barrel, while US West Texas Intermediate crude futures fell 0.5% to $71.42 per barrel.

Dollar, Treasury Yields

The US dollar rose to a fresh 2-1/2-month high and Treasury yields spiked to the highest levels since July amid market uncertainty ahead of the US election as well as the outlook on interest rate cuts.

US 10-year Treasury yields hovered near 4.2% after topping that level for the first time since July.

The dollar index, which measures the dollar against a basket of currencies, including the yen and the euro, rose 0.13% to 104.09, after hitting 104.10, its highest since August 2.

(With inputs from Reuters)

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