INDIAN STOCK MARKET: 8 KEY THINGS THAT CHANGED FOR MARKET OVER WEEKEND - GIFT NIFTY, US JOBS DATA TO NASDAQ RALLY
Indian stock market: The domestic equity indices, Sensex and Nifty 50, are expected to open higher on Monday tracking a rally in global peers amid improved sentiment.
Asian markets traded higher, while the US stock market rallied last week after a softer-than-expected US jobs report raised expectations that the US Federal Reserve would not keep interest rates higher for longer and could start cutting rates soon.
Investors will watch out for key stock market triggers including the developments over ongoing Lok Sabha elections 2024, the Q4 results, domestic and global macroeconomic data, crude oil prices, and other global cues.
On Friday, the Indian stock market benchmark indices ended around a percent lower, dragged by profit booking across sectors as well as losses in heavyweight stocks.
The Sensex dropped 732.96 points, or 0.98%, to close at 73,878.15, while the broader Nifty 50 settled 172.35 points, or 0.76%, lower at 22,475.85.
“Nifty 50 after marking a new high at 22,794 levels, witnessed profit booking and came under pressure. The index witnessed profit booking amid increasing volatility and nervousness at the higher zone. We expect the market to consolidate in a broader range and base to gradually shift higher,” 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 higher tracking a rally on Wall Street after US jobs data.
Japan and South Korea’s markets are shut for a public holiday. Hong Kong’s Hang Seng index futures indicated a higher opening. Meanwhile, Australia’s S&P/ASX 200 gained 0.46%.
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Gift Nifty Today
Gift Nifty was trading around 22,690 level, a premium of nearly 115 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
The US stock market ended sharply higher on Friday as a softer-than-expected employment report bolstered the case for US Fed rate cuts.
The Dow Jones Industrial Average rallied 450.02 points, or 1.18%, to 38,675.68, while the S&P 500 surged 63.59 points, or 1.26%, to 5,127.79. The Nasdaq Composite ended 315.37 points, or 1.99%, higher at 16,156.33.
Among stocks, Apple shares spiked 6.0% after the company announced a record $110 billion share buyback program and beat quarterly expectations. Amgen shares jumped 11.8%, while Expedia share price plunged 15.3% after it cut its full-year revenue growth forecast.
Also Read: Wall Street week ahead: Investors to watch credit & consumer sentiment reports, major earnings
US Nonfarm Payrolls
US nonfarm payrolls increased by 175,000 jobs last month, the fewest in six months, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls advancing by 243,000. April’s employment gains were below the 242,000 monthly average for the past year.
Wages increased 3.9% in the 12 months through April, below expectations for a 4.0% gain after rising 4.1% in March. The unemployment rate rose to 3.9% from 3.8%, remaining below 4% for the 27th straight month.
US Federal Reserve Officials
US Fed Governor Michelle Bowman reiterated her willingness to hike rates if inflation progress reverses, and Chicago Fed President Austan Goolsbee said the employment report boosted confidence the economy is not overheating, Reuters reported.
Berkshire Hathaway AGM 2024
Berkshire Hathaway’s annual meeting in 2024, chaired by the Oracle of Omaha Warren Buffett, was full of insights into the company’s investment decisions, succession plans and an event celebrating the legacy created by Buffett and his long-time business partner and friend late Charlie Munger.
US Treasury Yields, Dollar
The US dollar steadied after plunging almost 5% against the yen last week, while the Treasury yields also fell after a US payrolls report was softer than anticipated. The dollar index, which measures the US currency against six rivals, was at 105.12, having touched a three week low of 104.52 on Friday.
The yield on benchmark US 10-year notes dropped 6.1 basis points to 4.51%, while the 2-year note yield fell 6.5 basis points to 4.8119% from 4.877%. The 10-year was down nearly 17 basis points on the week, its biggest weekly drop since mid-December while the 2-year was down about 19 basis points, its biggest weekly drop since early January.
Oil Prices
Crude oil prices steadied after the biggest weekly drop since February as Saudi Arabia hiked selling prices for grades to Asia for the third month in a row.
Brent crude rose 0.01% to $82.97 a barrel after a 7.3% drop last week, while West Texas Intermediate was flat at $78.11.
(With inputs from Reuters)
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2024-05-06T01:48:38Z dg43tfdfdgfd