Indian Stock Market: 7 Key Things That Changed The Market Overnight – Gift Nifty, US PMI & Treasury Yields

Indian Stock Market: Domestic benchmark stock indices Sensex and Nifty 50 are likely to open flat with a positive bias on Tuesday amid mixed cues from their global peers.

Asian markets traded lower, while the US stock market ended higher overnight, led by gains in large-cap technology stocks.

U.S. manufacturing PMI data showed a contraction for the third straight month in June, while prices paid fell to a six-month low, an encouraging sign for the U.S. Federal Reserve in its fight against inflation, Reuters reported. Traders maintained their forecasts for about two interest rate cuts this year, starting in September, LSEG FedWatch showed.

Indian stock indices ended up more than half a percent each on Monday, led by gains in some financial and IT heavyweights.

The Sensex rose 443.46 points, or 0.56 per cent, to close at 79,476.19, while the Nifty 50 ended up 131.35 points, or 0.55 per cent, at 24,141.95.

Markets reversed the initial upward trend as positive cues from Asia and Europe fuelled the rally amid buying in banking, IT and telecom stocks. While there was no negative news on economic parameters, investors are closely watching the monsoon developments so far and the upcoming budget, said Prashanth Tapse, Senior Vice President (Research), Mehta Equities Ltd.

Here are the major global market indices for Sensex today:

Asian markets

Asian markets were lower on Tuesday. Japan's Nikkei 225 fell 0.41%, while the Topix was flat. South Korea's Kospi fell 0.22% and the Kosdaq declined 0.39%. Hong Kong's Hang Seng Index futures pointed to a lower start to trading.

Read here: Asian stocks fluctuate as traders weigh Trump win: Market recap

Give a Nifty Gift Today

The Gift Nifty was trading around the 24,245 level, a premium of nearly 35 points over the previous close in Nifty futures, indicating a positive start for Indian equity indices.

Wall Street

The U.S. stock market ended higher on Monday, led by gains in mega-cap growth stocks that supported the tech-heavy Nasdaq.

The Dow Jones Industrial Average gained 50.66 points, or 0.13%, to close at 39,169.52, while the S&P 500 gained 14.61 points, or 0.27%, to 5,475.09. The Nasdaq Composite ended up 146.70 points, or 0.83%, at 17,879.30.

Apple shares rose 2.9%, Microsoft shares gained 2%, Amazon shares closed up 2.2% and Tesla shares climbed 6.1%. Shares of Advanced Micro Devices fell 2.8% and Arm Holdings fell 2.9%. Shares of Chewy fell 6.7%.

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US PMI Index

U.S. manufacturing activity contracted for the third straight month in June. The Institute for Supply Management (ISM) said its manufacturing PMI fell to 48.5 last month from 48.7 in May. Economists polled by Reuters had expected the PMI to rise to 49.1.

Treasury bond yields

U.S. Treasury yields soared as traders assessed the potential economic implications of the November U.S. election following last week’s presidential debate between Joe Biden and Donald Trump. The benchmark 10-year Treasury yield rose nearly 14 basis points to 4.479% overnight.

Read also : Hindenburg Research receives SEBI notice over short bet on Adani

Dollar

The U.S. dollar hit a fresh 38-year high against the yen on Monday as Treasury yields rose sharply. The yen traded at 161.55 per dollar in Asia on Tuesday after falling to 161.72 per dollar on Monday. The Chinese yuan fell to 7.2705 per dollar, its weakest level since Nov. 14, 2023. The euro was last at $1.0735. The dollar index was around 105.85.

Oil Prices

Crude oil prices hit a near two-month high amid escalating tensions in the Middle East.

Brent crude oil gained 0.14% to $86.72 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 0.07% to $83.44.

(With contributions from Reuters)

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