Indian stock market: 8 key things that changed for market over weekend – Gift Nifty, US PMI to strong dollar | Stock Market News

Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday following positive cues from global markets.

Asian markets traded higher, while the US stock market rallied last week, led by technology stocks.

This week, investors will focus on Q3 results, US Federal Reserve meeting minutes, various economic data releases in India and the US, trends in foreign fund flows, crude oil prices, dollar movement and other key stock market triggers.

On Friday, the Indian stock market ended sharply lower due to profit booking amid the strengthening US dollar.

The Sensex plunged 720.60 points, or 0.90%, to close at 79,223.11, while the Nifty 50 settled 183.90 points, or 0.76%, lower at 24,004.75.

“Despite the short recovery in the past two sessions, markets lost the momentum as there is still a lot of pessimism due to slowing growth, higher domestic valuations, foreign fund outflows and uncertainty over US trade policies post Trump’s resumption as the country’s president. Hence, markets may see bouts of correction and investors will continue to maintain caution while keeping an eye on global developments,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Monday ahead of key economic data releases in several countries in the region. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1%.

Japan’s benchmark Nikkei 225 fell marginally, while the Topix eased 0.2%. South Korea’s Kospi rose 0.23%, while the Kosdaq gained 0.56%. Hong Kong’s Hang Seng index futures indicated a stronger opening.

Gift Nifty Today

Gift Nifty was trading around 24,130 level, a premium of nearly 38 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended higher on Friday led by broad rally amid gains in megacap growth and tech stocks.

The Dow Jones Industrial Average rose 324.36 points, or 0.77%, to 42,716.63, the S&P 500 gained 72.44 points, or 1.24%, to 5,941.11 and the Nasdaq Composite gained 331.19 points, or 1.72%, to 19,612.44.

Tesla share price jumped 8.2%, Nvidia stock price gained 4.45%, while Microsoft shares rose 1.3%. US Steel shares declined 5.6%.

US Manufacturing PMI

US manufacturing moved closer to recovery in December, with production rebounding and new orders rising further. The Institute for Supply Management (ISM) said that its manufacturing PMI increased to 49.3 last month, the highest reading since March, from 48.4 in November. December was the ninth consecutive month that the PMI remained below the 50 threshold. Economists polled by Reuters had forecast the PMI unchanged at 48.4.

Japan PMI

Japan’s service activity expanded for a second straight month in December. The final au Jibun Bank Service purchasing managers’ index (PMI) grew to 50.9 in December from 50.5 in November. The composite PMI rose to 50.5 in December from 50.1 in November.

US Federal Reserve

The US central bank’s benchmark policy rate should stay restrictive until it is more certain that inflation is returning to its 2% target, Richmond Federal Reserve President Thomas Barkin said. “I think there is more upside risk than downside risk” to inflation, given the economy’s continued strength and the possibility of renewed wage and other price pressures, Barkin told the Maryland Bankers Association in Baltimore.

Dollar

The dollar traded near a two-year peak on Monday. The US dollar index, which measures the greenback against a basket of currencies, rose 0.09% to 109.06. The offshore yuan was last 0.04% lower at 7.3630 per dollar. Sterling dipped 0.03% to $1.24195. The yen fell 0.3% to 157.765 per dollar, while the euro traded 0.13% lower at $1.0296.

Oil Prices

Crude oil prices for the sixth day, its longest streak of gains in 16 months. Brent crude oil rose 0.05% to $76.55 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.14% to $74.06.

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