Indian stock market: 6 key things that changed for market overnight – Gift Nifty, US trade deficit to oil prices

Indian stock market: The domestic equity market is expected to open on a cautious note on Wednesday following mixed global market cues.

Asian markets traded mostly lower while the US stock indices closed in the red overnight as investors remained cautious ahead of the US inflation data and decreasing expectations of early interest rate cuts by the US Federal Reserve.

Catch Live Market Updates here

Investors will now focus on a key inflation report from the US later this week for cues on the timing of the Fed’s rate cut.

On Tuesday, the Indian stock market indices, Sensex and Nifty 50, ended flat following mixed global cues as investors awaited key macroeconomic numbers and the December quarter earnings.

The Sensex closed at 71,386.21, up 31 points, or 0.04%, while the Nifty 50 settled at 21,544.85, higher by 32 points, or 0.15%.

“We expect the market to consolidate in a broader range and take cues from the upcoming earning season,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Also Read: Day trading guide for stock market today: Six stocks to buy or sell on 10th January

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

Asian Markets

Asian markets traded mostly lower Wednesday tracking overnight weakness on Wall Street, while Japanese stocks extended gains after hitting a 33-year high in the previous session.

Japan’s Nikkei 225 rose 0.55% and the Topix gained 0.33%. South Korea’s Kospi was marginally lower, while the Kosdaq plunged 0.76%. Hong Kong’s Hang Seng index futures indicated a weak opening.

Gift Nifty

Gift Nifty was trading around 21,579 level as compared to Nifty futures’ previous close of 21,629, indicating a negative start for the Indian benchmark indices.

(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)

US Stock Market

The US stock market indices ended mostly lower on Tuesday dragged by energy stocks and a moderate rise in Treasury yields. Investors assessed the timing and size of interest rate cuts by the US Federal Reserve in 2024 ahead of inflation data this week.

Decreasing expectations that the central bank could begin cutting rates as soon as March kept US Treasury yields elevated above 4%.

The Dow Jones Industrial Average fell 157.85 points, or 0.42%, to 37,525.16, while the S&P 500 eased 7.04 points, or 0.15%, to 4,756.50. The Nasdaq Composite ended 13.94 points, or 0.09%, higher at 14,857.71.

Among stocks, Boeing shares ended 1.41% lower, while Juniper Networks rallied 21.81%.

US Trade Deficit

The US trade deficit narrowed in November as imports of consumer goods fell to a one-year low. The trade deficit contracted 2.0% to $63.2 billion, the Commerce Department’s Census Bureau said. Economists polled by Reuters had forecast the trade deficit would rise to $65.0 billion in November.

Imports declined 1.9%, or $6.1 billion, to $316.9 billion. Exports decreased 1.9%, or $4.8 billion, to $253.7 billion.

Also Read: Cochin Shipyard shares to trade ex-split; Grasim Industries, Sharanam Infraproject stocks to trade ex-rights

Oil Prices

Crude oil prices steadied after rising more than 2% in the previous session on signs US stockpiles continued to contract.

Brent crude oil rose 0.14% to $77.70 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.15% to $72.35.

Goldman Sachs ups Nifty target

Goldman Sachs has revised its year-end 2024 target for the benchmark Nifty 50, increasing it to 23,500 from 21,800, in less than two months. This adjustment reflects an enhanced outlook for both economic growth and interest rate trends.

(With inputs from Agencies)

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.