Indian Stock Exchange: 7 Key Things That Changed in the Market Overnight – Gift Nifty, Nasdaq Record Close to Oil Prices

Indian Stock Exchange: Domestic equity benchmark indices Sensex and Nifty 50 are expected to open higher on Tuesday, tracking the positive momentum in global markets.

Asian markets rallied while the U.S. stock market posted a record gain overnight, helped by gains in technology stocks on the rise of artificial intelligence (AI).

On Friday, the Indian stock market indices ended the session with gains, and the Nifty 50 reached record values ​​during the session.

The Sensex rose 181.87 points or 0.24% to close at 76,992.77, while the Nifty 50 ended 66.70 points or 0.29% higher at 23,465.60.

On Monday, June 17, the Indian stock exchange was closed due to the Eid-ul-Adha 2024 holiday.

This week, investors will be on the lookout for any announcements related to the upcoming Union Budget or other government policies that may result in specific stock actions, domestic and global macroeconomic indicators, trends in foreign fund flows, crude oil prices, central bank policy verdicts, and other global signals that will drive the market in the future.

Read here: Week ahead: Macro data, BoE, China policy verdicts, FII activity, global signals among key market factors this week

“The positive market sentiment helped Nifty set new highs and move closer to the 23,500 level as cautious investors continued their selective approach to buying key frontline stocks. However, mid- and small-cap stocks are seeing renewed buying interest, and large-cap stocks are facing greater valuation headwinds. As government expectations start building in the run-up to next month’s budget, markets may face bouts of intraday volatility in the future,” said Prashanth Tapse, senior vice-president (research), Mehta Equities Ltd.

Here are today’s top market signals for Sensex:

Asian markets

Asian markets posted record gains overnight on Wall Street, led by technology stocks.

Japan’s Nikkei 225 gained 0.84%, while the Topix rose 0.64%. South Korea’s Kospi gained 0.9%. Hong Kong’s Hang Seng Index futures pointed to a higher opening.

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Nice gift today

Gift Nifty was trading around 23,590, a premium of almost 130 points over Friday’s close of Nifty futures, indicating a strong start for Indian stock indices.

Wall Street

The U.S. stock market ended sharply higher on Monday, with the S&P 500 and Nasdaq indexes hitting record closing highs, helped by a rally in technology stocks amid enthusiasm for artificial intelligence.

The Dow Jones Industrial Average added 188.94 points, or 0.49%, to 38,778.10, while the S&P 500 rose 41.63 points, or 0.77%, to 5,473.23. The Nasdaq Composite Index ended the session 168.14 points, or 0.95%, higher at 17,857.02.

Among stocks, Apple’s stock price ended up 1.97%, while Microsoft’s stock rose 1.31%. Broadcom shares rose 5.41%, Taiwan Semiconductor Manufacturing’s share price rose 2.74%, and Micron Technology’s share price rose 4.58%. Autodesk shares rose 6.48%.

Read also: Stocks, fixed income and gold: Axis recommends diverse multi-asset portfolios for optimal risk management

US Fed officials

The U.S. Federal Reserve will be able to cut its benchmark interest rate later this year, Philadelphia Fed President Patrick Harker said, if its economic forecasts are correct.

“If everything turns out as expected, I think one rate cut would be appropriate by the end of the year,” Harker said after presenting his view that he sees slowing but above-trend economic growth, a moderate increase in the unemployment rate and a “long slippage” back to the inflation target as a base case, Reuters reported.

Trade deficit

India’s trade deficit rose to a seven-month high of $23.78 billion in May, government data showed. While merchandise exports rose 9.1% year-on-year to $38.13 billion last month, imports also rose 7.7% to $61.91 billion from $57.48 billion year-on-year.

Read also: Stock Market News: When Will Nifty 50 Index Hit 30K Top?

Oil prices

Oil prices continued to rise on Tuesday on improved demand prospects.

Global benchmark Brent crude futures rose 0.25% to $84.46 a barrel, while U.S. West Texas Intermediate crude futures rose 0.2% to $80.49 a barrel. Both benchmarks rose around 2% on Monday, closing at their highest level since April.

Dollar

The US dollar fell, deepening losses from the previous day. The U.S. dollar index, which measures the currency against the euro, sterling and four other major markets, fell slightly to 105.26 in early Asian trading.

(with support from Reuters)

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