5 things that changed for market overnight: Gift Nifty, US inflation to global market cues for Sensex today

The Indian stock market is expected to open higher on Thursday following positive global cues.

Gains in Asian markets after the US stock indices closed mixed overnight, may support domestic equities.

On Wednesday, the domestic equity indices ended higher due to upbeat macroeconomic data amid global signals being subdued. The benchmark Nifty ended above 20,000-mark for the first time ever.

“Market would react to US inflation data that would have a bearing on the US Federal Reserve interest rate decision next week. Overall, we would suggest investors to shift their focus from mid and small caps to large caps in the near term, as the risk-reward is favourable over there,” 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 higher on Thursday following mixed cues from Wall Street after the release of US inflation data.

Japan’s Nikkei 225 gained 0.5% and the Topix rose 0.4%. South Korea’s Kospi added 0.43%, while the Kosdaq was 0.84% higher.

Hong Kong’s Hang Seng index futures were trading higher at 18,042, compared to the HSI’s close of 18,009.22.

Australia’s S&P/ASX 200 was marginally higher ahead of August unemployment figures.

Meanwhile, Gift Nifty was trading higher at 20,180 as compared to Nifty futures’ previous close of 20,129, indicating a positive start for the Indian benchmark indices.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — September 14

Wall Street

The US stock market ended mixed on Wednesday after a moderate increase in inflation in August raised expectations that the US Federal Reserve will leave interest rates unchanged in its September policy.

The Dow Jones Industrial Average declined 0.20% to 34,575.53, while the S&P 500 rose 0.12% to end at 4,467.44. The Nasdaq ended 0.29% higher at 13,813.59.

Among stocks, Apple share price dropped 1.2%, down for a second day after unveiling new iPhones while leaving prices unchanged.

Citigroup shares rose 1.7% after CEO Jane Fraser announced a major management reorganization. US-listed shares of Chinese electric-vehicle makers Nio and Xpeng declined 4.7% and 3.1%, respectively. Sprit Airlines fell over 6%, while Moderna gained 3.2%.

US Inflation

US consumer prices increased by the most in more than a year in August amid a surge in the cost of gasoline.

The consumer price index increased by 0.6% month-on-month in August, the largest gain since June 2022, the Labor Department said on Wednesday. The CPI rose 3.7% on a year-over-year basis.

Excluding the volatile food and energy components, the CPI increased 0.3% amid declining prices for used cars and trucks. The core CPI had increased 0.2% for two consecutive months, Reuters reported.

Arm IPO priced at $51 per share

SoftBank Group Corp’s chip designer Arm Holdings Plc has priced its US initial public offering (IPO) at $51 per share at the top end of its indicated price range, Reuters reported quoting sources.

The IPO raised $4.87 billion for SoftBank based on 95.5 million shares sold. It infers a valuation on Arm on a fully diluted basis of $54.5 billion.

Brent oil above $92 per barrel

Crude oil prices traded higher on Thursday, after dipping slightly in the previous session, as markets refocused on expectations of tight crude supply for the rest of 2023.

International benchmark Brent futures rose 0.38% to $92.23 a barrel, while US West Texas Intermediate crude (WTI) gained 0.38% to $88.86.

Also Read: Oil hits multi-month high as supply cuts fuels rally, Brent above $92/bbl; Where are prices headed?

The International Energy Agency (IEA) said on Wednesday that Saudi Arabia and Russia’s extension of oil output cuts to the end of 2023 will mean a substantial market deficit through the fourth quarter.

(With inputs from Reuters)