5 things that changed for the stock market overnight

The Indian benchmark equity indices, Sensex and Nifty 50, are likely to open on a steady note on Thursday following positive signs from global peers.

Asian markets traded higher, while the US stock market indices ended higher overnight after the release of the minutes of US Federal Reserve’s latest policy meeting.

On Wednesday, the domestic equity indices extended gains into the second consecutive session, amid positive global cues.

The BSE Sensex closed 393.69 points, or 0.60%, higher at 66,473.05, while the broader NSE Nifty 50 climbed 121.50 points, or 0.62%, to 19,811.35.

“In the near term, the market despite geopolitical concerns seems on a strong footing and we believe frontline stocks like Reliance, HDFC Bank and FMCG names could drive the Nifty higher. IT overall should remain weak earnings but a lot will depend on the 2H commentary with regard to global tech spend which can drive interest back into IT,” said Jaykrishna Gandhi, Head – Business Development, Institutional Equities, Emkay Global Financial Services.

On the economic front, investors would take cues from the FOMC meeting minutes and US core PPI data to be released late Wednesday. Markets would also watch for UK GDP data, India CPI and Manufacturing output data and US CPI data to be released on Thursday.

Here are key domestic and global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Thursday tracking overnight gains on Wall Street and ahead of the release of key US consumer inflation data.

Japan’s Nikkei 225 gained 1%, while Topix traded 0.9% higher. South Korea’s Kospi added 0.75%, while Kosdaq was up 1.7%.

Hong Kong’s Hang Seng index futures traded at 18,137 compared with the HSI’s close of 17,893.1.

Australia’s S&P/ASX 200 rose 0.31%.

Gift Nifty was trading around 19,847 level as against Nifty futures’ previous close of 19,852, indicating a tepid start for the Indian benchmark indices.

Also Read: Global markets today: US stocks end higher after Fed minutes

Wall Street

US stock market indices closed higher on Wednesday as the minutes of the US Federal Reserve’s last meeting showed caution among policy makers that helped fuel investor hopes that rates would stay steady.

The Dow Jones Industrial Average gained 65.57 points, or 0.19%, to 33,804.87, while the S&P 500 rose 18.71 points, or 0.43%, to 4,376.95. The Nasdaq Composite ended 96.83 points, or 0.71%, higher at 13,659.68.

Among stocks, Exxon Mobil shares declined 3.6%, while Pioneer Natural Resources shares ended 1.4% higher.

Birkenstock Holding shares closed 12.6% lower at $40.20. Eli Lilly gained 4.5%, while DaVita and Baxter International plunged 16.7% and 12.3%, respectively.

(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)

US Fed Meeting Minutes

The minutes of the US Federal Reserve meeting held on September 19-20 released on Wednesday showed its officials regarded the US economy’s outlook as uncertain.

“A vast majority of participants continued to judge the future path of the economy as highly uncertain,” said the minutes.

Read here: Fed minutes: Key takeaways from FOMC’s September meeting

All Fed policymakers had agreed that the central bank should proceed carefully on rate decisions, and incoming data would help determine whether another hike was needed in coming months, said the minutes.

Bond yields drop

US Treasury yields dropped to about a two-week low on Wednesday as minutes from the last US Federal Reserve meeting showed policymakers on cautious footing last month, while the fighting continued between Palestinian militants and Israel.

In Treasuries, prices rose on a safe-haven bid, and the US 10-year yield dropped to a two-week trough of 4.544% and was last down 7.6 basis points (bps).

The dollar index, which tracks the US currency against six others, traded little changed after touching a two-week low of 105.550.

TCS Q2 Results

Tata Consultancy Services (TCS), the largest software services export in the country, reported a 2.4% QoQ rise in its consolidated net profit for the fiscal’s second quarter ended September (Q2FY24) to ₹11,342 crore.

The IT company’s consolidated revenue from operations rose 0.5% to ₹59,692 crore in Q2FY24, from ₹59,381 crore, QoQ.

EBIT increased 5.3% to ₹14,483 crore from ₹13,755 crore, while EBIT margin expanded by 110 bps to 24.3% from 23.3%, QoQ.

Read here: TCS Q2 Results: Net profit rises 8.7% on year to ₹11,342 crore; declares dividend

The IT major announced approved share buyback up to ₹17,000 crore at ₹4,150 per share, and second interim dividend of ₹9 per equity share.

(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 taking any investment decisions.