Indian Stock Market: 8 Important Things That Changed the Market Overnight – Gift Nifty, Dow Crosses 40,000 on Unemployment Claims

Asian markets fell and US stock markets ended in the red overnight after weekly unemployment claims numbers. The Dow Jones topped the $40,000 mark during the day before paring its gains.

Indian stock market indexes ended Thursday up nearly 1% each, led by sector-wide buying amid mixed global conditions.

The Sensex surged 676.69 points (0.93%) to close at 73,663.72, while the Nifty 50 rose 203.30 points (0.92%) to close at 22,403.85.

“Global positive news and Nifty weekly maturity short covering led to rebound in domestic equities. Overall, we expect the market to recover gradually. However, consistent FII selling, India VIX remains at 20 Volatility is likely to continue to rise further due to the above average and concerns over the ongoing general election polls and their results,” said Siddhartha, Head of Retail Research, Motilal Oswal Financial Services. Khemka said.

Here are today’s key global market cues for Sensex.

asian market

Asian markets fell ahead of key economic indicators in China, tracking overnight losses on Wall Street.

Japan’s Nikkei Stock Average fell 0.78% and TOPIX fell 0.33%. South Korea’s Kospi fell 0.11%, and the Kosdaq fell 1.66%. Hong Kong’s Hang Seng Index futures rose.

Also read: Buy/Sell: Vaishali Parekh recommends 3 stocks to buy today — May 17

Give a thoughtful gift today

Gift Nifty is trading around 22,477 levels, at a premium of nearly 20 points from the previous closing price of Nifty futures, indicating a flat-to-positive turn for the Indian stock market index.

wall street

US stock markets ended lower on Thursday after the Dow reached an intraday high of 40,000 for the first time.

The Dow Jones Industrial Average fell 38.62 points, or 0.10%, to $39,869.38, and the S&P 500 index fell 11.05 points, or 0.21%, to 5,297.10. The Nasdaq Composite Index fell 44.07 points, or 0.26%, to end at 16,698.32.

Among stocks, Walmart stock rose 7%, Deere stock fell 4.8%, and Chubb stock rose 4.7%. GameStop stock fell 30%, and AMC Entertainment stock fell 15%.

Also read: Reddit stock soars 11% after announcing AI partnership with OpenAI

Dow over 40,000

The Dow Jones Industrial Average exceeded the 40,000 level for the first time on Thursday, hitting its third straight intraday high on expectations for lower U.S. interest rates and strong business results. However, the blue-chip index pared its gains, cooling off from record highs and ending slightly lower.

The Dow Jones Industrial Average rose to $40,051.05, and the S&P 500 and Nasdaq also hit record highs in early New York trading, but gradually lost momentum. Despite the Fed’s significant interest rate hikes, the Dow has rebounded from its October 2022 lows, driven by solid U.S. economic growth.

U.S. unemployment insurance claims

The number of Americans filing new claims for unemployment benefits fell last week. The number of first-time claims for state unemployment benefits fell by 10,000 for the week ending May 11, to a seasonally adjusted 222,000. Economists polled by Reuters had predicted 220,000 applications for the latest week.

bank of japan

According to Reuters, Bank of Japan Governor Kazuo Ueda said the Bank of Japan has no immediate plans to sell its large holdings in exchange-traded funds (ETFs). “We need to spend some time deciding what to do with the ETFs we hold, including whether to release them in the future,” Ueda said in parliament.

Also read: Dividend stocks: 4 stocks trading ex-dividend today

dollar, government bond yield

The US dollar and Treasury yields rose on Thursday. The dollar index against the country’s six currencies rose 0.27% to 104.47. U.S. Treasury yields rebounded Thursday from nearly six-week lows, with the benchmark 10-year yield rising to 4.377% and the two-year yield rising to 4.793%.

crude oil price

Oil prices rose, with global benchmark Brent crude posting its first weekly rise in three weeks.

Brent crude oil prices rose 0.3% to $83.48 per barrel, while US West Texas Intermediate (WTI) crude oil futures rose 0.2% to $79.41 per barrel.

(Information provided by Reuters)

Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.

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Published: May 17, 2024, 7:10 AM IST