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 monetary policy decisions of various global central banks.

Asian markets traded lower, while 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.

Indian stock market indices on Monday ended the volatile trading 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 broader Nifty 50 settled 32.35 points, or 0.15%, higher at 22,055.70.

"We expect markets to consolidate over the next few days while the overall market may continue to remain subdued," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd.

Here are the key global market cues for Sensex today:

Asian markets

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

Japan's Nikkei 225 fell 0.5% at the open and the Topix was stable. South Korea's Kospi declined 0.8%, while the KOSDAC eased 0.4%. Hong Kong Hang Seng 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 previous close of Nifty futures, indicating a gap-down start for the Indian stock market indices.

Wall Street

US stock market indices ended higher on Monday led by mega-cap growth stocks as 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 points, while the  S&P 500 rose 32.33 points, or 0.63%, to 5,149. 42 points. 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 rose 1.9%, while Boeing's share price finished 1.5% lower and Super Micro Computer shares fell 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. 

Shares of Alphabet, Google's parent company, rose 4.4% after Bloomberg News reported that Apple is in talks to integrate Google's Gemini AI engine into the iPhone. Apple shares gained 0.6%.

Nvidia's share price rose 0.7% after its CEO Jensen Huang showed off new chips aimed at expanding his company's dominance in artificial intelligence computing.

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

Oil prices

Crude oil prices extended gains amid Ukrainian drone attacks on Russian refineries and OPEC supply cuts. Brent crude, the global benchmark, rose 0.06 percent to USD 86.94 a barrel after rising 1.8 percent on Monday to the highest closing level 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 rate policy on Tuesday and increase interest rates for the first time in 17 years. If the nine-member board believes conditions are right, the Bank of Japan will set the overnight interest rate as its new target and guide it in a range of 0-0.1%, paying 0.1% interest. on the excess reserves maintained by financial institutions to the Central Bank. Reuters reported.

The 10-year Japanese government bond yield rose one basis point to 0.765%, while the two-year government bond yield rose one basis point to 0.19%.

US Treasury Yields

The benchmark US 10-year Treasury yields hit three-week highs on Monday ahead of this week's Federal Reserve meeting. The yields on 10-year notes reached 4.348% rising about 5 bps on the day, their highest levels since February 23. Two-year yields hit 4.751%, their highest level since Feb. 23, Reuters reported. The yield curve inversion between two- and 10-year bonds fell 2 basis points to -40 basis points.      

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not those of B2B. We advise investors to consult certified experts before making any investment decisions.

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