Indian stock market: 8 key things that changed for market overnight – Gift Nifty, US Treasury yields to RBI Bulletin | Stock Market News

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a muted note and remain volatile on Tuesday amid cautiousness over weak global market cues.

Asian markets traded lower, while the US stock market ended mixed overnight, weighed down by rising Treasury yields.

Markets are pricing in an 89% chance of the US Federal Reserve cutting rates by 25 basis points (bps) next month, versus a 50% chance a month earlier, when investors saw an equal likelihood of a larger 50 bps cut, the CME FedWatch tool showed.

Traders are anticipating overall a 41 bps of easing for the rest of the year, with the Fed having kicked off its rate-cut cycle with a 50 bps cut in September, Reuters reported.

On Tuesday, the Indian stock market indices ended lower amid profit booking at higher levels.

The Sensex fell 73.48 points, or 0.09%, to close at 81,151.27, while the Nifty 50 settled 72.95 points, or 0.29%, lower at 24,781.10.

“Markets started the week on a subdued note with weak results from index heavyweights like Kotak Mahindra Bank, Tata Consumer Products and Ultratech Cement dragging the indices lower. On the positive side, HDFC Bank reported steady numbers which limited the downside. Overall, we expect the market to remain under pressure led by persistent FII selling & muted domestic earnings,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Tuesday following a mixed session overnight on Wall Street.

Japan’s Nikkei 225 fell 1.34%, while the Topix declined 1.04%. South Korea’s Kospi dropped 1.21% and Kosdaq plunged 2.11%.

The blue-chip CSI300 Index slipped 0.3%, while the Shanghai Composite Index fell 0.1%. Hong Kong benchmark Hang Seng was down 0.2%.

Gift Nifty Today

Gift Nifty was trading around 24,800 level, a premium of nearly 10 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Monday as the rise in Treasury yields weighed.

The Dow Jones Industrial Average declined 344.31 points, or 0.80%, to 42,931.60, while the S&P 500 fell 10.69 points, or 0.18%, to 5,853.98. The Nasdaq Composite ended 50.45 points, or 0.27%, higher at 18,540.01

Nvidia stock price jumped 4.14% to close at a record high of $143.71. Tesla share price fell 0.84%, while Boeing stock rallied 3.1% and Spirit Airlines skyrocketed 53.06%.

US Treasury Yields

The US benchmark 10-year Treasury yields rose to a 12-week high on Monday as bonds tumbled on cooling expectations of US Federal Reserve rate cuts.. The yield on the 10-year Treasury jumped as high as 4.17%, a 12-week high.

US Federal Reserve

Four Federal Reserve policymakers expressed support for further interest-rate cuts, but appeared to differ on how fast or far they believe any cuts should go, Reuters reported. Three of them expressed a preference for going slow, using words like “modest” and “gradual” to describe their views on the right pace for rate cuts. The fourth, San Francisco Fed President Mary Daly, said she feels Fed policy is “very tight” and does not believe that a strong economy, as long as inflation continues to fall, should keep the central bank from continuing to reduce rates.

RBI Bulletin

The cumulative rate hikes of 2.5 percentage points by the central bank since May 2022 negatively impacted headline inflation by 1.60%, RBI Bulletin said. “Policy rate increases have anchored inflation expectations and modulated aggregate demand, generating disinflationary response,” it said.

Oil Prices

Crude oil prices fell after rising nearly 2% in the previous session. Brent crude futures for December delivery declined 0.3% to $74.03 a barrel, while US West Texas Intermediate crude futures for November delivery fell 0.41% to $70.27 a barrel.

Dollar

The US dollar clung to a two-and-half-month high on Tuesday, boosted by rising Treasury yields. The dollar index which measures the US currency versus six rivals was last at 103.96, having touched its highest level of 104.02 since August 1 on Monday. The index is on course for an over 3% gain in the month.

(With inputs from Reuters)

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