Indian stock market: 8 key things that changed for market overnight – Gift Nifty, Jerome Powell testimony to MSCI rejig | Stock Market News

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Wednesday after a sharp fall in the previous session, and amid mixed global market cues.

Asian markets traded mostly higher, while the US stock market ended mixed overnight after Federal Reserve Chair Jerome Powell’s testimony to the US Congress.

On the domestic front, the Indian stock market has seen a sharp correction amid sustained foreign capital outflows, concerns over weak corporate earnings, slowing domestic economic growth, and the rupee plunging to all-time lows against the US dollar.

On Tuesday, the Indian stock market crashed, with both the benchmark indices slipping more than 1% each.

The Sensex cracked 1,018.20 points, or 1.32%, to close at 76,293.60, while the Nifty 50 settled 309.80 points, or 1.32%, lower at 23,071.80.

“Indian markets underperformed global indices as benchmark indices plunged over 1% each on wide-spread selling, mainly ignited by worries over escalating tariff war after Trump imposed 25% import tariffs on steel and aluminium, which would hurt India’s business prospects. The mood is already sombre because of likely prospects of subdued government spending going ahead and dismal earnings show so far which has created uncertainty amongst the investors and prompted them to offload their equity holdings,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Wednesday, following a similar move overnight on Wall Street.

Japan’s Nikkei 225 gained 0.71%, while the Topix rose 0.22%. South Korea’s Kospi fell 0.21% and the Kosdaq declined 0.36%. Hong Kong’s Hang Seng index futures indicated a stronger opening.

Gift Nifty Today

Gift Nifty was trading around 23,180 level, a premium of nearly 27 points from the Nifty futures’ previous close, indicating a mildly positive start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Tuesday after US Federal Reserve Chair Jerome Powell’s latest comments.

The Dow Jones Industrial Average gained 0.28% to 44,593.65, while the S&P 500 rose 0.03% to end at 6,068.50. The Nasdaq closed 0.36% lower at 19,643.86.

Coca-Cola shares rallied 4.7%, Tesla share price declined 6.3% and Apple stock price rose 2.2%. Phillips 66 stock surged 4.7%, DuPont de Nemours shares jumped almost 7%, Ecolab shares spiked 6.2%, while Fidelity National Information Services sank over 11%.

Jerome Powell Testimony

US Federal Reserve Chair Jerome Powell said the central bank doesn’t need to rush to adjust interest rates, again signaling that officials will be patient before lowering borrowing costs further.

“With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Powell told the Senate Banking committee, Bloomberg reported. “We know that reducing policy restraint too fast or too much could hinder progress on inflation,” he said. “At the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment,” he added.

MSCI Rejig

Global index provider MSCI has added Hyundai Motor India Ltd. to the MSCI Global Standard Indexes, replacing Adani Green Energy, in the February review. MSCI also added 19 Indian small-cap stocks, while removing an equal number from its indices.

US Treasury Yields, Dollar

US treasury yields rose after comments from Fed Chair Powell. The yield on benchmark US 10-year notes climbed 4 basis points to 4.535% and has advanced for four straight sessions, its longest run of gains in a month.

The US dollar retreated from its tariff-driven rally. The dollar index, which measures the greenback against a basket of currencies, fell 0.41% to 107.92. The dollar was 0.3% firmer and above 153 yen for the first time in a week, but elsewhere it was nursing modest losses and traded at $1.0357 per euro.

Crude Oil Prices

Crude oil prices fell after an industry report indicated a large increase in US crude stockpiles. Brent crude oil dropped 0.39% to $76.70 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.42% to $73.01.

Gold Prices Today

Gold prices eased after hitting an all-time high in the previous session. Spot gold fell 0.1% to $2,895.23 per ounce, after climbing a peak of $2,942.70 on Tuesday. US gold futures declined 0.3% to $2,923.40.

(With inputs from Agencies)

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