6 things that changed for the stock market overnight

The Indian stock market indices, Sensex and Nifty 50, are expected to open higher on Wednesday tracking positive global cues.

The Asian markets traded mostly in the green amid plans of stimulus measures in China, while the US stocks ended higher overnight on strong corporate earnings and robust economic data.

The Indian markets were shut on Tuesday. The domestic benchmark equity indices, Sensex and Nifty 50, ended sharply lower on Monday dragged by across the broad selloff.

The Sensex tanked 825.74 points, or 1.26%, to settle at 64,571.88, while the Nifty plunged 260.90 points, or 1.34%, to 19,281.75.

Tensions over regional conflict in the Middle East, worries over more rate hikes by the US Federal Reserve for an extended period and mixed corporate earnings so far spooked markets.

“We expect the market to remain volatile amid rise in global uncertainties while the stock specific action is likely to continue in the market amid a busy results season. Investors are advised to shift focus towards large-cap where valuations are comparatively comfortable,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed amid China stimulus plans after President Xi Jinping stepped up support for the economy.

Japan’s Nikkei 225 rose 0.77% and the Topix gained 0.79%. South Korea’s Kospi was flat, while the Kosdaq fell 0.21%.

Hong Kong’s Hang Seng index futures were higher at 17,480.

Australia’s S&P/ASX 200 eased 0.19%.

Gift Nifty was trading around 19,303 level, as compared to Nifty futures’ previous close of 19,263, indicating a higher opening for the Indian indices.

Also Read: Buy or sell: Vaishali Parekh recommends three intraday stocks for today — October 25

Wall Street

US stock market indices ended higher on Tuesday as investor risk appetite improved amid strong corporate earnings and upbeat forecasts.

The Dow Jones Industrial Average rallied 204.97 points, or 0.62%, to 33,141.38 and the S&P 500 rose 30.64 points, or 0.73%, to 4,247.68. The Nasdaq Composite ended 121.55 points, or 0.93%, higher at 13,139.88.

Among stocks, Verizon surged 9.3% and General Electric shares rose 6.5%. Coca-Cola share price gained 2.9% after it hiked its annual sales outlook, while 3M stock rallied 5.3% on its upbeat quarterly report. RTX jumped 7.2% after its results topped expectations.

Also Read: Global markets today: Equities in US, Europe rise on robust earnings

US Corporate Earnings

Google parent Alphabet and computing colossus Microsoft Tuesday reported a rise in quarterly profits on demand for cloud computing and artificial intelligence.

Alphabet reported a quarterly profit of $19.7 billion, powered by money taken in from ads, YouTube, and cloud services. The company’s revenue was $76.7 billion as against $69 billion in the same period a year earlier.

Tech giant Microsoft beat Wall Street estimates for fiscal first-quarter results in all segments. Its profit was $2.99 per share, above analyst estimates of $2.65 per share, according to LSEG data. The company reported a net income of $22.3 billion for the July to September period, up 27% from a year ago. The company reported $56.5 billion in sales for the quarter.

Also Read: Microsoft Q3 Results: Revenues rise 13% to $56.5 billion, beating analysts estimates

Microsoft share price rose over 3% to $341.11, while Alphabet shares declined more than 5% to $129.67 in after-market trades despite beating overall earnings expectations.

Visa’s fourth-quarter profit beat estimates as the world’s largest payments processor reported a profit of $2.33 per share in the three months ended September 30, topping expectations of $2.24 per share.

US business output rises in October

US business output ticked higher in October as the manufacturing sector pulled out of a five-month contraction on a pickup in new orders, and services activity accelerated modestly amid signs of easing inflationary pressures, Reuters reported.

S&P Global said its flash US Composite Purchasing Managers Index tracking both the manufacturing and service sectors rose to 51.0 in October – one point above the 50 level that separates expansion and contraction – from a final September reading of 50.2. It was the highest level since July.

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China Stimulus

In a move to support the economy, China announced issuing extra sovereign debt and raising the budget deficit ratio. China’s central government will issue 1 trillion yuan ($136.82 billion) in sovereign bonds to local governments in the fourth quarter to support the rebuilding of disaster-hit areas, Reuters reported, quoting state media Xinhua.

This will widen the country’s 2023 budget deficit ratio to around 3.8% from 3% previously.

Oil prices fall over 6% in three sessions

Crude oil prices were nearly flat on Wednesday falling more than 6% over the previous three sessions, as signs of tighter US supplies countered economic data that dampened the outlook for energy demand.

Brent crude futures gained 0.07% to $88.13 a barrel, while US West Texas Intermediate crude futures fell 0.10% to $83.66 a barrel.

Read here: Oil prices continue to decline amid weak economic data, uncertainty over Israel-Hamas war

(With inputs from Reuters)

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