6 things that changed for the stock market overnight – Gift Nifty, rally in US tech stocks to a weak dollar

The Indian stock market indices are expected to open higher on Tuesday tracking gains in global peers.

The Asian markets gained while the US stocks ended higher overnight led by rally in technology stocks.

The domestic equity market ended lower on Monday. The Sensex fell 139.58 points, or 0.21%, to close at 65,655.15, while the NSE Nifty 50 ended 37.80 points, or 0.19%, lower at 19,694.00.

“Overall market is likely to consolidate in a range as focus will be on the US FOMC meeting minutes which will be released on Wednesday. Globally, participation could be lower on account of Thanks Giving Holiday on Thursday. Investors would watch for US existing home sales data that will be released on Tuesday,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

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

Asian Markets

Asian markets traded mostly higher on Tuesday following overnight rally on Wall Street fuelled by technology stocks.

Japan’s Nikkei 225 eased 0.13%, while the Topix fell 0.21%. South Korea’s Kospi gained 0.76% and Kosdaq traded 0.30% higher.

Hong Kong’s Hang Seng index futures stood higher at 17,943, compared with the HSI’s close of 17,778.07.

Australia’s S&P/ASX 200 rose 0.26%.

Gift Nifty was trading around 19,813 level as against Nifty futures’ previous close of 19,750, indicating a positive start for the Indian benchmark indices.

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Wall Street

US stock market indices ended higher on Monday with Nasdaq’s rallying over 1% led by gains in heavyweight Microsoft shares that hit a record high.

The Dow Jones Industrial Average gained 203.76 points, or 0.58%, to 35,151.04, while the S&P 500 jumped 33.36 points, or 0.74%, to 4,547.38. The Nasdaq Composite ended 159.05 points, or 1.13%, higher at 14,284.53.

Among stocks, Microsoft share price touched a record high and ended up 2% after it hired prominent artificial intelligence executives. Nvidia shares jumped 2.3% to close at an all-time high.

Bristol Myers Squibb fell 3.8%, while Boeing shares rose 4.6%.

US Dollar drops below 200-DMA

The US dollar traded multi-month lows against the euro and a handful of other major currencies on Tuesday amid expectations that US interest rates will fall next year. The dollar index had dropped below its 200-day moving average on Monday amid a rally in the yuan.

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The dollar index, which measures the dollar against a basket of six major currencies, fell 1.9% last week alongside a big rally in US Treasures, and lost a further 0.5% overnight to 103.44.

The euro touched a three-month high of $1.0952 on Monday and the yuan also hit a three-month high on the dollar.

Microsoft shares hit record

Microsoft share price rallied over 2% to a record closing high on Monday after the company hired prominent artificial intelligence executives.

Microsoft CEO Satya Nadella said Sam Altman, who headed OpenAI until he was ousted late last week, was set to join Microsoft to lead a new advanced AI research team. Microsoft will also take on Greg Brockman, another OpenAI cofounder, as well as other researchers.

Microsoft shares ended 2.05% higher at $377.44 with its market capitalization at $2.81 trillion, making it the second-largest listed company in the US.

Oil prices ease on demand concerns

Crude oil prices eased on Tuesday, reversing the previous day’s rally, on concerns over weaker demand amid a slowing global economy.

Brent crude futures fell 19 cents, or 0.2%, to $82.13 a barrel, while US West Texas Intermediate crude was at $77.68 a barrel, down 15 cents, or 0.2%.

Both contracts climbed about 2% on Monday after three OPEC sources told Reuters that the producer group, made up of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, is set to consider whether to make additional oil supply cuts when it meets on November 26.

(With inputs from Reuters)

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