Indian stock market: 6 key things that changed for market overnight – S&P 500 at record to US consumer sentiment

Global market cues remain positive as the US stock indices Dow Jones and S&P 500 hit record highs overnight lifted by a rally in technology stocks. Speculation that the US Federal Reserve will start cutting rates this year also helped gains in the market.

The domestic equity benchmark indices ended with healthy gains on Friday led by buying in most sectors amid positive global cues.

The Sensex jumped 496.37 points, or 0.70%, to end at 71,683.23, while the Nifty 50 settled 160.15 points, or 0.75%, higher at 21,622.40.

“Next week the result season will pick up pace with a host of key large and mid-cap companies releasing their numbers. Overall we expect domestic equities to trade in a broader range with positive bias,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Investors will today track the Q3 results of key index heavyweights like ICICI Bank and Kotak Bank. Moreover, the market will also take cues from global factors including Bank of Japan and European Central Bank meetings and economic data from the US, China, and Japan. 

Trading in the Indian stock market will take place for a full session today, while markets will remain shut on Monday, January 22.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 20

Here are key domestic and global market cues for Sensex today:

S&P 500 at record high

The US stock market indices ended higher with the S&P 500 posting a record high close on Friday for the first time in two years led by a rally in technology stocks.

The S&P 500 jumped 1.23% to end at 4,839.81, while the Dow Jones Industrial Average rallied 1.05% to 37,863.80. The Nasdaq surged 1.70% to 15,310.97.

Tech stocks rally

Optimism around artificial intelligence (AI) fueled a rally in chipmakers and other heavyweight technology stocks as Nvidia shares jumped 4.2% and Advanced Micro Devices soared 7% after server maker Super Micro Computer raised its second-quarter profit forecast, lifting its shares soaring 36%.

Microsoft shares and Apple shares also gained over a percent each.

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US Consumer Sentiment

US consumer sentiment improved in January to the highest level since the summer of 2021, the University of Michigan’s survey of consumer sentiment showed. The survey’s reading of one-year inflation expectations fell to 2.9% this month from 3.1% in December. Its five-year inflation outlook slipped to 2.8% from 2.9% in the prior month, Reuters reported.

US Federal Reserve officials

Chicago Fed President Austan Goolsbee said that the Fed needs more inflation data in hand before any rate cut judgment could be made. Atlanta Fed President Raphael Bostic on Thursday said the baseline for cuts to start was in the third quarter. San Francisco Fed chief Mary Daly said it’s far too early to declare victory on inflation.

Oil Prices

Crude oil prices ended lower on Friday but recorded a weekly gain over Middle East tensions and disruptions to oil output.

Brent oil futures settled 0.68% lower at $78.56 a barrel, while US West Texas Intermediate crude fell 0.90% to settle at $73.41. For the week, Brent rose about 0.5% while the US benchmark rose over 1%.

Also Read: China: $6.3 trillion wiped out from market value of stocks as investors play the waiting game

Reliance Q3 Results

Reliance Industries Ltd (RIL), the oil-to-telecom conglomerate, reported a 10.9% year-on-year (YoY) increase in its consolidated net profit to ₹19,641 crore in the third quarter of FY24 led by consumer businesses and the oil & gas segment. RIL’s total revenue from operations in Q3FY24 increased 3.2% YoY to ₹2,27,970 crore.

Reliance Industries’ consolidated EBITDA during the quarter ended December 2023 rose 16.7% YoY to ₹44,678 crore, while EBITDA margin grew by 210 bps YoY to 18%.

(With inputs from Reuters)

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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Published: 20 Jan 2024, 07:13 AM IST