Indian stock market: 8 key things that changed for market overnight – Gift Nifty, US job openings to corporate earnings

Indian stock market: The domestic equity market is expected to open flat on Wednesday tracking mixed cues from global peers as sentiment remained cautious.

Asian markets traded lower, while US stock market indices ended mixed as investors reacted to corporate earnings by prominent companies.

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Investors now watch out for the US Federal Reserve monetary policy decision and Fed Chair Jerome Powell’s outlook on interest rate trajectory. It is widely anticipated that the Fed will keep interest rates unchanged this time while providing signals regarding its intentions to commence rate cuts.

Moreover, traders also remained cautious ahead of the announcement of India’s Union Budget for FY 2024-2025.

On Tuesday, the Indian stock market ended lower, with both the benchmark indices falling a percent each, as sentiment remained cautious ahead of the Interim Budget and the US Federal Reserve’s monetary policy decision.

The Sensex dropped 801.67 points, or 1.11%, to close at 71,139.90, while the Nifty 50 ended 215.50 points, or 0.99%, lower at 21,522.10.

“All eyes will be on the Federal Reserve’s policy meeting. Though investors expect the US Fed to maintain the status quo, the direction concerning rate cuts will hold importance. Overall, we expect the market to remain range-bound till the two large events, the US Fed meeting and India’s Interim Budget, unfold,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

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Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Wednesday following a mixed trend from Wall Street overnight and ahead of the US Fed’s policy and the release of key economic data in the region.

Japan’s Nikkei 225 fell 0.75%, while the Topix declined 0.26%. South Korea’s Kospi declined 0.17% and the Kosdaq dropped 0.32%. Hong Kong’s Hang Seng index futures indicated at a flat opening.

Gift Nifty

Gift Nifty was trading around 21,627 level, as compared with Nifty futures’ previous close of 21,625, indicating a flat start for the Indian stock market indices.

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Wall Street

US stock market indices ended mixed on Tuesday ahead of the Federal Reserve’s interest rate decision and as investors watched out for high profile corporate earnings.

The Dow Jones Industrial Average rose 0.35% to 38,467.31, while the S&P 500 eased 0.06% to end at 4,924.97. The Nasdaq Composite closed 0.76% lower at 15,509.90.

Among stocks, Alphabet shares fell 6%, while Microsoft shares declined 1% after-hours trade after the companies released their quarterly earnings.

United Parcel Service share price declined 8.2% after disappointing annual revenue forecast, while General Motors shares rallied 7.8% on upbeat 2024 earnings forecast. Ford Motor rose 2.0%.

Citigroup and Bank of America shares gained over 3%, while Super Micro Computer rose 3.5%.

US Jobs Openings

US job openings unexpectedly rose in December, while data for the prior month was revised higher. Job openings were up 101,000 to 9.026 million on the last day of December, the Labor Department’s Bureau of Labor Statistics said in its monthly Job Openings and Labor Turnover Survey, or JOLTS report. Economists polled by Reuters had forecast 8.75 million job openings in November.

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US Consumer Confidence

US consumer confidence reached its highest level since December 2021. Consumer confidence jumped to 114.8 in January, marking the third straight month of gains, the Conference Board said.

Japan’s Factory Output

Japan’s factory output rose 1.8% in December from the previous month, compared with the median market forecast for a 2.4% rise. Other data showed Japanese retail sales expanded 2.1% in December from a year earlier. Compared with the previous month, retail sales shrank 2.9% in December, following a 1.1% gain in November, Reuters reported.

US Dollar

The US dollar headed for its biggest monthly gain since September ahead of the interest rate decision by the Fed. The dollar has gained 2% against a basket of major currencies this month as markets dialled back expectations on the speed and scale of rate cuts amid strong US economic data, Reuters reported. The dollar index last was at 103.36.

Oil prices

Crude oil prices rose on Tuesday amid higher global economic growth forecasts and escalating tensions in the Middle East. Brent crude futures rose 0.57% to settle at $82.87 a barrel, while US West Texas Intermediate crude ended up $1.04, or 1.35%, at $77.82.

(With inputs from Reuters)

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