5 things that changed for the stock market overnight – Gift Nifty to drop in US megacap stocks
The Indian stock market witnessed a stellar rally with both the benchmark indices, Sensex and Nifty 50, at their all-time high levels. Strong domestic cues and the return foreign capital into Indian equities have supported the upside momentum.
The domestic equity indices are expected to open flat with a positive bias on Tuesday amid weakness in global peers. The Asian markets traded lower, while the US stock indices ended in the red overnight.
On Monday, the Indian stock market indices ended at their record closing highs, witnessing the biggest one day rise in over one year.
The Sensex surged 1,383.93 points, or 2.05%, to end at 68,865.12, while the Nifty closed 418.90 points, or 2.07%, higher at 20,686.80.
“We expect market sentiment to strengthen further as the ongoing pre-election rally is quite strong now. Given the government’s focus approach towards long-term capex across key areas, we expect BFSI, Industrials, Real Estate, Auto and Consumer Discretionary to do well going forward,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
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Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Tuesday following an overnight drop in Wall Street indices and amid a slew of economic data release from across the region.
Japan’s Nikkei 225 dropped 0.67%, while the Topix fell marginally. South Korea’s Kospi declined 0.55% and the Kosdaq fell 0.62%.
Hong Kong’s Hang Seng index futures pointed at a slightly stronger open.
Gift Nifty
The Gift Nifty was trading around 20,815 level as against Nifty futures’ previous close of 20,804, indicating a mildly positive start for the Indian benchmark indices.
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US stock market
The US stocks ended lower on Monday amid rise in treasury yields. The S&P 500 receded, with megacaps Microsoft, Apple, Nvidia and Amazon shares falling over 1%.
The Dow Jones Industrial Average declined 0.11% to 36,204.44, while the S&P 500 fell 0.54% to end at 4,569.78. The Nasdaq ended 0.84% lower at 14,185.49.
Treasury yields rise
US Treasury yields rose, with the benchmark 10-year yield moving off three-month lows to stand 4 basis points higher at 4.261%. The two-year US Treasury yield, which typically moves in step with interest rate expectations, rose 7 basis points to 4.633%, Reuters reported.
Oil prices
Crude oil prices fell amid skepticism over the latest OPEC decision on supply cuts and uncertainty surrounding global fuel demand outweighed the risk of supply disruptions.
US crude settled down 1.39% to $73.04 a barrel. Brent crude ended at $78.03 per barrel, down 1.08%.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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