Indian stock market: 7 key things that changed for market overnight – Gift Nifty, US tech stocks rally to oil prices

Indian stock market: The domestic equity market is expected to open on a weak note Tuesday tracking mixed global market cues ahead of the monetary policy decisions of various global central banks.

Asian markets traded lower, while the US stock indices ended higher overnight led by megacap growth stocks.

Market participants await the Bank of Japan’s monetary policy decisions later today and the US Federal Reserve’s policy this week for further cues on interest rates.

On Monday, the Indian stock market indices ended the volatile session higher led by select metals and auto heavyweights.

The Sensex gained 104.99 points, or 0.14%, to close at 72,748.42, while the Nifty 50 settled 32.35 points, or 0.15%, higher at 22,055.70.

“We expect the markets to consolidate over the next few days while the broader market may continue to remain subdued,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — March 19

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Tuesday ahead of the monetary policy decision from the Bank of Japan which is expected to end its negative interest rate policy after 17 years.

Japan’s Nikkei 225 fell 0.5% at open and the Topix was flat. South Korea’s Kospi declined 0.8%, while the Kosdaq eased 0.4%. Hong Kong’s Hang Seng index futures indicated a weak opening.

Gift Nifty Today

Gift Nifty was trading around the 22,060 level, a discount of over 70 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.

Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on March 19

Wall Street

US stock market indices ended higher on Monday led by megacap growth stocks while investors awaited the US Federal Reserve’s policy meeting this week.

The Dow Jones Industrial Average gained 75.66 points, or 0.20%, to 38,790.43, while the S&P 500 rose 32.33 points, or 0.63%, to 5,149.42. The Nasdaq Composite ended 130.27 points, or 0.82%, higher at 16,103.45.

Among stocks, Tesla shares rallied 6.3% and Nvidia share price gained 0.7%. US-listed shares of Xpeng rallied 1.9%, while Boeing stock price ended 1.5% lower and Super Micro Computer shares declined 6.4%.

Tech Stocks Rally

Technology megacap stocks in the US rallied on Monday with the Nasdaq 100 gaining nearly 1% and a gauge of the ‘Magnificent Seven’ tech megacaps climbing twice as much.

Google’s parent Alphabet shares jumped 4.4% as Bloomberg News reported Apple Inc. is in talks to build Google’s Gemini artificial-intelligence engine into the iPhone. Apple shares gained 0.6%.

Nvidia stock price rose 0.7% after its Chief Executive Jensen Huang showed off new chips aimed at extending his company’s dominance of AI computing.

Tesla shares ended 6.3% higher after the electric carmaker said it would soon increase the price of its Model Y EVs in parts of Europe.

Read here: Nvidia, Alphabet, among other US tech stocks rally; S&P 500 technology index gains 0.5%

Oil Prices

Crude oil prices extended gains amid Ukrainian drone attacks on Russian refineries and OPEC supply cuts. Brent crude, the global benchmark, was up 0.06% at $86.94 a barrel after a 1.8% rally on Monday to the highest close since late October. West Texas Intermediate traded 0.06% higher at $82.77.

Bank of Japan

The Bank of Japan is expected to end eight years of negative interest rates policy on Tuesday and increase interest rates for the first time in 17 years. If the nine-member board believes the conditions are right, the BOJ will set the overnight call rate as its new target and guide it in a range of 0-0.1% by paying 0.1% interest on excess reserves financial institutions park with the central bank, Reuters reported.

Japan’s 10-year government bond yield rose 1 basis point (bp) to 0.765%, while the two-year government bond yield rose 1 bp to 0.19%.

US Treasury Yields

The benchmark US 10-year Treasury yields hit three-week highs on Monday ahead of the Federal Reserve’s meeting this week. The yields on 10-year notes reached 4.348%, up almost 5 bps on the day and the highest since February 23. Two-year yields touched 4.751%, their highest since February 23, Reuters reported. The inversion in the yield curve between two-year and 10-year notes narrowed by 2 bps to minus 40 bps.

(With inputs from Agencies)

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