Indian stock market: 6 key things that changed for market overnight – Gift Nifty, rise in US bond yields to oil prices

Asian markets traded mixed while the US stock market also ended on a mixed note overnight amid lack of fresh triggers. Gains in US dollar and treasury yields weighed on the equities.

On Wednesday, the Indian stock market benchmark indices ended choppy session on a flat note amid cautious market sentiment.

The Sensex fell 45.46 points, or 0.06%, to close at 73,466.39, while the Nifty 50 settled flat at 22,302.50.

“Consistent selling by FIIs, a mixed set of Q4 results, and lower turnout in the election kept investors wary. We expect the market to consolidate in a broader range amid nervousness surrounding the ongoing Lok Sabha election,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed tracking similar moves overnight on Wall Street and as investors await key trade data from China.

Japan’s Nikkei 225 rose 0.15% and the Topix gained 0.29%. South Korea’s Kospi fell 0.21%, while the Kosdaq declined 0.13%. Hong Kong’s Hang Seng index futures indicated a weak opening.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 9

Gift Nifty Today

Gift Nifty was trading around 22,375 level, a discount of nearly 20 points from the Nifty futures’ previous close, indicating a tepid start for the Indian stock market indices.

Wall Street

The US stock market ended mixed on Wednesday amid rise in Treasury yields, with the Dow Jones Industrial Average closing above 39,000 level for the first time in five weeks.

The Dow Jones Industrial Average gained 172.13 points, or 0.44%, to 39,056.39, while the S&P 500 eased 0.03 points to 5,187.67. The Nasdaq Composite ended 29.80 points, or 0.18%, lower at 16,302.76.

Among stocks, Uber shares declined 5.7% after it posted a surprise quarterly loss and issued a downbeat forecast, while Tesla share price fell 1.7%. Other megacap stocks such as Nvidia, Amazon and Alphabet slipped between 0.2% and 1.1%.

Intel shares fell 2.2%, Tripadvisor stock price plunged 28.7%, while Lyft shares rallied 7.1%.

Fed’s Collins

US Federal Reserve Bank of Boston President Susan Collins said that the US economy needs to cool off as an avenue toward getting inflation back to the central bank’s 2% target, Reuters reported.

For now, when it comes to monetary policy, “the recent upward surprises to activity and inflation suggest the likely need to keep policy at its current level until we have greater confidence that inflation is moving sustainably toward 2%,” she said.

US Treasury Yields

US Treasury yields rose after the $42 billion sale of 10-year bonds saw tepid demand. The yield on 10-year Treasury notes increased 4 basis points to 4.492%, while the 2-year bond yield was up 1.3 bps at 4.84%. 

Also Read: Bond Losses Extend to Asia as Stocks Tread Water: Markets Wrap

Oil Prices

Crude oil prices rose after US inventories data showed an unexpected drop in nationwide crude holdings.

Brent crude oil gained 0.34% to $83.86 a barrel, while the US West Texas Intermediate (WTI) crude futures rose 0.43% to $79.33.

(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 making any investment decisions.

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Published: 09 May 2024, 07:11 AM IST