Indian stock market: 7 key things that changed for market overnight

Indian stock market: The domestic equity market is expected to open higher amid cautiousness on Tuesday tracking mixed global market cues.

Asian markets traded mixed after cautious trading on Wall Street ahead of inflation data that is likely to influence the timing of the US Federal Reserve’s pivot to monetary easing.

Market participants will keep an eye on inflation data to be released in India as well as in the US later Tuesday.

The Indian stock market witnessed a widespread selloff on Monday, with both the benchmark indices closing the day nearly one percent lower amid cautiousness ahead of the key macroeconomic data and weak global signals.

The Sensex plunged 616.75 points, or 0.83%, to close at 73,502.64, while the Nifty 50 settled 160.90 points, or 0.72%, lower at 22,332.65.

“Sentiments dampened after the SEBI Chief highlighted irrational run-ups and expensive valuations in small and midcaps. Also, Stress test disclosures for small and midcap funds are to be announced on March 15. This is likely to keep the pressure on the broader market in the near term. Going ahead, we expect the consolidation to continue in the market with large bouts of volatility,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

He recommends switching to large caps where the risk-reward is more favourable.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — March 12

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed following a mixed trade overnight on Wall Street and after Japan’s corporate inflation came in higher than estimates.

Japan’s Nikkei 225 fell 1.12% and the Topix declined 1.37%. South Korea’s Kospi gained 0.18%, while the Kosdaq rose 0.55%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around the 22,445 level, a premium of nearly 30 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

The US stock market indices ended mixed on Monday ahead of the consumer inflation data this week that could provide new clarity on the US Federal Reserve’s interest rate cut trajectory going ahead.

The Dow Jones Industrial Average gained 46.97 points, or 0.12%, to 38,769.66, while the S&P 500 fell 5.75 points, or 0.11%, to 5,117.94. The Nasdaq Composite ended 65.84 points, or 0.41%, lower at 16,019.27.

Among stocks, Nvidia shares declined 2%, Advanced Micro Devices shares dropped 4.3% and Broadcom share price dipped 1.2%.

Equitrans Midstream shares gained 1.5%, while EQT shares slipped 7.8%.

Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on March 12

Japan wholesale prices

Japan’s wholesale prices rose faster than expected in February as the Corporate Goods Price Index (CGPI) grew by 0.6% year-on-year, central bank data showed, accelerating from the previous month.

Japan still in deflation

Japanese Finance Minister Shunichi Suzuki said the country was not at a stage where it could declare deflation as beaten despite some positive developments such as high wage hikes and record levels of companies’ capital spending, Reuters reported.

Oil prices

Crude oil prices steadied after a three-day drop ahead of a series of economic data that may provide direction for prices.

Brent crude traded 0.17% higher at $82.35 a barrel, while the US West Texas Intermediate futures gained 0.09% to $78.00 a barrel, after falling 1.5% over the previous three sessions.

Bitcoin prices

Bitcoin price soared to a fresh record high above $72,000 led by a surge in inflows into new spot exchange-traded funds for the digital asset. Hopes that the US Fed will soon cut interest rates have also lifted bitcoin price, which was last up 6.24% at $72,321. Bitcoin prices hit a new high of $72,886.14.

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.