Indian stock market: 8 key things that changed for market overnight

Asian markets traded in the green following overnight gains in the US stock market after soft economic data raised hopes of interest rate cuts by the Federal Reserve.

Sentiment in the Indian markets improved after the National Democratic Alliance (NDA) leaders pledged support to Narendra Modi’s Bharatiya Janata Party (BJP) for the alliance to form a government for the third term.

On Wednesday, the Indian stock market staged a remarkable recovery with the benchmark indices gaining over 3% each as investors turned optimistic over political stability and supportive policies.

The Sensex surged 2,303.19 points, or 3.20%, to close at 74,382.24, while the Nifty 50 settled 735.85 points, or 3.36%, higher at 22,620.35.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — June 6

“We expect the market to remain obsessed with government formation exercises, with a keen eye on key cabinet portfolios such as Finance, Defense, Roads, Energy, Commerce, and Railways. With election overhang done, we expect the focus to revert to fundamentals,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

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

Asian Markets

Asian markets traded higher tracking overnight rally on Wall Street amid increased interest rate cut hopes.

Japan’s Nikkei 225 surged 1.12%, while the Topix rose 0.65%. Hong Kong’s Hang Seng index futures indicated a weaker opening. South Korea’s markets were closed for a public holiday.

Also Read: Zee Entertainment stock on F&O ban list on June 6

Gift Nifty Today

Gift Nifty was trading around 22,680 level, a premium of nearly 100 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

The US stock market ended higher on Wednesday with the S&P 500 and Nasdaq hitting record closing highs led by technology stocks.

The Dow Jones Industrial Average gained 96.04 points, or 0.25%, to 38,807.33, while the S&P 500 rallied 62.69 points, or 1.18%, to 5,354.03. The Nasdaq Composite ended 330.86 points, or 1.96%, higher at 17,187.91.

Among stocks, Nvidia share price jumped 5.2% to end at $1,224.40, valuing the company at $3.012 trillion, overtaking Apple to become the world’s second-most valuable company. Apple shares gained 0.8% with its market capitalization at $3.003 trillion.

Read here: Nvidia hits $3 trillion in value as shares rise 5.2%, chip maker zooms past Apple as second-most valuable company

Intel shares rose 2.5% and CrowdStrike Holdings share price jumped 11.9%. Hewlett Packard Enterprise shares rallied 10.7%, while Dollar Tree stock price slipped 4.9%.

Lok Sabha Election Results Update

The members of the National Democratic Alliance (NDA), including Nitish Kumar and Chandrababu Naidu have elected Narendra Modi as their leader. Now, caretaker Prime Minister Modi is expected to stake claim to form the new government at the Centre.

Catch Lok Sabha Election Results 2024 LIVE Updates here

US Private Payrolls

Hiring by US private employers slid to a four-month low in May. Private payrolls increased by 152,000 jobs last month, after rising by a downwardly revised 188,000 in April, the ADP Employment report showed. Economists polled by Reuters had forecast private employment increasing by 175,000 last month.

US Services PMI

The US services sector snapped back into growth mode in May after a short-lived contraction in the prior month, Reuters reported. The Institute of Supply Management (ISM) said its non-manufacturing purchasing managers index (PMI) rose to 53.8 last month from 49.4 in April. The reading in May was the highest since last August.

Also Read: Sell sell? Why the market doesn’t like the poll results

Treasury Yields

US 10-year Treasury yields fell to a two-month low on Wednesday after weak jobs growth data.

Benchmark 10-year note yields were last down 5 basis points at 4.289% and got as low as 4.287%, the lowest since April 1, Reuters reported. Two-year note yields fell 4 basis points to 4.731% and reached 4.726%, the lowest since May 16.

Oil Prices

Crude oil prices gained for a second session even as Saudi Arabia signaled concerns over the demand outlook.

Brent crude oil rose 0.52% to $78.82 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.66% to $74.56.

(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 making any investment decisions.

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Published: 06 Jun 2024, 07:05 AM IST

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