Indian stock market: 6 key things that changed for market overnight – Gift Nifty, FII selling to crude oil price rally

Indian stock market: The domestic equity indices are expected to open on a cautious note on Thursday after a heavy selloff in the previous session and tracking mixed global market cues.

Asian markets were muted while the US stock indices ended mixed overnight investors looked out for the next round of data on inflation and consumer health for further clues on the direction of the US Federal Reserve policy.

Investors will watch out for India’s wholesale inflation and the US producer price data to be released today.

On Wednesday, the Indian stock market indices plunged over a percent amid broad-based selling across sectors with the mid and smallcaps continuing to bleed the most.

The Sensex plummeted 906.07 points, or 1.23%, to close at 72,761.89, while the broad-based Nifty 50 settled 338.00 points, or 1.51%, lower at 21,997.70.

“Markets failed to maintain their momentum amid intense selling seen in mid and small-cap. Ongoing scrutiny from SEBI, pending outcome of MF stress test, and expensive valuation post smart rally seen in last few months led to profit booking. We expect the sluggishness in the market to continue in the near term with Nifty’s major support ~21,500 zone. Key event to watch out is India’s WPI inflation which will released today,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

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Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded cautiously on Thursday following a mixed action on Wall Street overnight.

Japan’s Nikkei 225 fell 0.45% and the Topix declined 0.21%. South Korea’s Kospi gained 0.22%, while the Kosdaq index was marginally higher. Hong Kong’s Hang Seng index futures indicated a stronger opening.

Gift Nifty Today

Gift Nifty was trading around the 22,035 level, a discount of nearly 70 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

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Wall Street

The US stock market indices ended mixed on Wednesday amid profit booking in chipmaker stocks.

The Dow Jones Industrial Average gained 37.83 points, or 0.1%, to 39,043.32, while the S&P 500 fell 9.96 points, or 0.19%, to 5,165.31. The Nasdaq Composite ended 87.87 points, or 0.54%, lower at 16,177.77.

Among individual stocks, Nvidia shares fell 1.1%, while Intel share price declined 4.4%. Meta stock price slipped 0.8% and Apple shares dipped 1.2%. Dollar Tree shares plunged 14.2% and McDonald’s shares dropped 3.9%.

Oil prices

Crude oil prices rallied on Wednesday as US crude stockpiles shrunk and after Ukraine attacked another refinery in Russia.

Brent crude futures contract for May jumped 2.58% to settle at $84.03 a barrel, while the US West Texas Intermediate (WTI) crude futures for April surged 2.78% to $79.72 a barrel.

Read here: Oil prices rise 2% after supply disruption as Ukraine attacks Russian refineries; Brent at $83/bbl

US Treasury yields

US Treasury yields rose modestly as investors looked ahead to inflation and consumer health data for clues on the direction of Federal Reserve policy. The yield on the benchmark US 10-year notes rose 3.5 basis points (bps) to 4.19%, while the 2-year note yield was up 2.9 bps to 4.6282%. The dollar index fell 0.18% to 102.77.

FII Selling

On Wednesday, Foreign institutional investors (FIIs) net sold Indian shares worth ₹4,595.06 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹9,093.72 crore, as per provisional data available on the exchanges.

(With inputs from Reuters)

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