Indian stock market: 6 key things that changed for market overnight – Gift Nifty, US PMI data to gold prices

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note Tuesday tracking mixed global cues from global peers.

Asian markets traded mixed, while the US stock market ended mixed overnight, ahead of the US Federal Reserve meeting.

The Federal Open Markets Committee (FOMC) is due to convene later in the day for its last policy meeting of 2024. Markets see a 98.2% chance of a quarter-point rate cut at the meeting, but have only priced in a roughly 14.7% chance of another reduction in January, according to CME’s FedWatch tool.

On Monday, the Indian stock market benchmark indices ended lower amid cautiousness ahead of the US Federal Reserve meeting.

The Sensex declined 384.55 points, or 0.47%, to close at 81,748.57, while the Nifty 50 settled 100.05 points, or 0.4%, lower at 24,668.25.

“There is heightened action in the primary markets with five IPO listings and seven new IPOs opening for subscription this week. We expect markets to consolidate within a broad range, as sentiments remain cautious ahead of the US Fed and Bank of Japan’s interest rate decision this week,” 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 mixed on Tuesday, following similar moves overnight on Wall Street.

Japan’s Nikkei 225 gained 0.34% and Topix rose 0.29%, while South Korea’s Kospi fell 0.28%, while the Kosdaq dropped 0.2%. Hong Kong’s Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 24,670 level, a discount of nearly 70 points from the Nifty futures’ previous close, indicating a weak start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Monday, with the Nasdaq closing at a record high led by megacap tech shares.

The Dow Jones Industrial Average fell 110.21 points, or 0.25%, to 43,717.85, while the S&P 500 rose 23.03 points, or 0.38%, to 6,074.12. The Nasdaq Composite ended 247.17 points, or 1.24%, higher at 20,173.89.

Google parent Alphabet shares rallied 3.6% and Tesla stock price jumped 6.1%. Honeywell International shares gained 3.7%. Nvidia shares fell 1.7%.

US Manufacturing PMI

US manufacturing activity contracted further in December, with a measure of factory output dropping to the lowest level in more than 4-1/2 years. S&P Global said that its flash manufacturing PMI dropped to 48.3 this month from 49.7 in November. Economists polled by Reuters had forecast a flash reading of 49.8.

Gold Prices

Gold prices steadied ahead of the Federal Reserve’s policy meeting. Spot gold steadied at $2,652.30 per ounce, while US gold futures were flat at $2,669.10.

Currencies

The US dollar held firm and near recent peaks on Tuesday. The euro was not far from the year’s lows at $1.0518, while the yen was marginally weaker at 154.17 per dollar. China’s yuan was under gentle pressure at 7.2918 in offshore trade and Sterling last bought $1.2695.

(With inputs from Reuters)

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