Indian stock market: 10 key things that changed for market overnight – Gift Nifty, US retail sales to Japan exports | Stock Market News

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open flat on Wednesday following a mixed trend in global markets ahead of the US Federal Reserve monetary policy decision later today.

Asian markets traded mostly higher, while the US stock market closed mixed overnight ahead of the Fed interest rate decision.

The US Federal Reserve is widely expected to cut interest rates after the FOMC meet ends today. The comments from the US Fed Chairman Jerome Powell on the future trajectory of rate cuts will be keenly watched.

However, an unexpected rise in US retail sales last month suggested there is no urgency for the Fed to do a supersized rate cut of 50 basis points.

Markets are pricing in a 65% chance the Fed will cut borrowing costs by 50 basis points, according to the CME’s FedWatch Tool.

On Tuesday, the Indian stock market indices ended marginally higher as traders remained cautious ahead of the US Fed policy meeting.

The Sensex gained 90.88 points, or 0.11%, to close at 83,079.66, while the Nifty 50 settled 34.80 points, or 0.14%, higher at 25,418.55.

“Range-bound session continued for a second straight session ahead of key US Fed policy meet decision today. Also, investor participation was thin on account of Ananta Chaturdashi, and hence buying was seen in select frontline stocks. Besides rate cut hopes, the Fed chief’s comment on the US economy and inflation will be key things to look for as it will give some indication of the future rate cut prospects,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed ahead of the US Fed interest rate decision. Japan’s Nikkei 225 gained 1.22% while the Topix rose 0.9%. South Korea and Hong Kong markets are closed today. Futures for mainland China’s CSI 300 stood higher at 3,163.

Gift Nifty Today

Gift Nifty was trading around 25,455 level, a premium of nearly 5 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 Tuesday, with the blue-chip Dow Jones hitting a record intraday high for a second-straight day.

The Dow Jones Industrial Average fell 15.90 points, or 0.04%, to 41,606.18, while the S&P 500 rose 1.49 points, or 0.03%, to 5,634.58. The Nasdaq Composite ended 35.93 points, or 0.20%, higher at 17,628.06.

Microsoft stock price gained 0.88%, while Intel shares rose 2.68% and Amazon share price added 1.08%.

US Retail Sales

US retail sales unexpectedly rose in August. Retail sales increased 0.1% last month after an upwardly revised 1.1% surge in July. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, falling 0.2% after a previously reported 1.0% jump in July.

Japan Trade Balance

Japan’s exports rose at a much slower-than-expected pace in August and shipment volumes continued to slide. Total exports rose 5.6% year-on-year (YoY) in August, up for a ninth straight month, official data showed, less than a median market forecast for a 10% increase and following a 10.3% rise in July.

Overall shipment volumes fell 2.7% last month from the year-ago period, the seventh consecutive month of declines. Imports grew 2.3% in August from a year earlier, versus a 13.4% increase expected by economists, Reuters reported. As a result, the trade balance stood at a deficit of 695.3 billion yen ($4.90 billion), compared with the forecast of a deficit of 1.38 trillion yen.

Oil Prices

Crude oil prices steadied after closing at the highest in more than two weeks. Brent crude oil eased 0.05% to $73.66 a barrel, while the US West Texas Intermediate (WTI) crude futures fell 0.15% to $71.08.

Dollar

The US dollar steadied on Wednesday. The dollar is not far from the year’s low at $1.1201 per euro, while it briefly fell below 140 yen on Monday but changed hands at 142.02 yen early on Wednesday.

US Treasury Yields

US Treasury 10-year yields fell to 3.599%, their lowest since May 2023, but rallied to trade 1.9 bps higher at 3.641%. The two-year yield rose after hitting its weakest level in two years on Monday.

Windfall tax on crude oil

The government has scrapped the windfall tax on domestically produced crude oil with effect from September 18. The windfall tax on domestically produced crude oil will be zero, a government notification said.

Gold Rate Today

Gold prices were steady as market participants braced for an expected Fed rate cut for the first time in more than four years.

Spot gold rose 0.1% to $2,572.11 per ounce after hitting a record high of $2,589.59 on Monday. US gold futures rose 0.2% to $2,598.30.

(With inputs from Reuters)

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 making any investment decisions.