Indian Stock Market Update: 7 Overnight Changes Impacting Nifty 50 (NSE) and Sensex (BSE)

• The Indian stock market is poised for a lower opening on Wednesday, influenced by weak global cues.
• Asian markets exhibited mixed trading patterns, while the US markets also closed mixed overnight.
• “We expect the Nifty to remain sideways to marginally positive,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.

Stay updated with the latest developments in the Indian stock market and global financial trends.

Asian Markets

Asian markets traded mixed on Wednesday, mirroring the overnight trend on Wall Street. Japan’s Nikkei 225 gained 0.18%, while the Topix remained flat. South Korea’s Kospi declined by 0.26% and the Kosdaq dropped by 0.44%. Hong Kong’s Hang Seng index futures indicated a weaker opening.

Gift Nifty Today

Gift Nifty was trading around the 22,835 level, reflecting a discount of nearly 90 points from the Nifty futures’ previous close. This suggests a gap-down start for the Indian stock market indices.

Wall Street

The US stock market ended mixed on Tuesday, with the Nasdaq crossing the 17,000 mark for the first time. The Dow Jones Industrial Average declined by 216.73 points, or 0.55%, to 38,852.86. The S&P 500 rose slightly by 1.32 points, or 0.02%, to 5,306.04. The Nasdaq Composite closed 99.09 points, or 0.59%, higher at 17,019.88.

US Consumer Confidence

US consumer confidence unexpectedly improved in May after three consecutive months of decline. The Conference Board reported that its consumer confidence index increased to 102.0 in May from an upwardly revised 97.5 in April. Economists had forecast the index to slip to 95.9.

US Federal Reserve

Federal Reserve Bank of Minneapolis President Neel Kashkari stated that the US central bank’s policymakers have not ruled out additional interest-rate increases. He emphasized the need for more evidence of cooling inflation before considering rate cuts, given the strong labor market and resilient economy.

Treasury Yields and Dollar

US Treasury yields rose to multi-week highs following two lackluster debt auctions. The 10-year yield increased by 6.5 basis points to 4.538%, reaching its highest level since May 3rd. The US two-year yield rose by 1.9 basis points to 4.972%, nearing a four-week peak of 4.981%. The dollar gained as benchmark US Treasury yields hit a four-week high, with the dollar index up 0.03% at 104.59.

Oil Prices

Crude oil prices extended gains amid heightened geopolitical tensions in the Middle East ahead of an OPEC meeting. Brent crude oil rose by 0.38% to $84.54 a barrel, while US West Texas Intermediate (WTI) crude futures gained 0.49% to $80.22.

Conclusion

In summary, the Indian stock market is expected to open lower amid mixed global cues. Key factors influencing the market include rising US Treasury yields, hawkish comments from US Federal Reserve officials, and cautious sentiment ahead of key economic data releases. Investors are advised to stay informed and consider expert recommendations before making investment decisions.