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

Investors were rattled after the Bharatiya Janata Party (BJP) failed to cross the halfway mark in the lower house of the Parliament and secure a clear majority. However, the BJP-led National Democratic Alliance (NDA) managed only a slim majority to form the government at the Centre.

Asian markets traded mixed, while the US stock market ended higher overnight after weaker-than-expected job openings data increased hopes of an interest rate cut by the US Federal Reserve.

Market expectations for a September rate reduction now stand around 65%, versus below 50% last week, according to the CME’s FedWatch tool, Reuters reported.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — June 5

On Tuesday, the Indian stock market suffered a massive selloff after the Lok Sabha election result trends fell short of what the exit polls had predicted, spooking investors.

The Sensex crashed 4,389.73 points, or 5.74%, to close at 72,079.05, while the Nifty 50 settled 1,379.40 points, or 5.93%, lower at 21,884.50.

“Markets will likely shed the ‘Modi premium,’ causing a correction in PSU and infra stocks. Once this turbulence stabilizes, attention will shift to the core macro factors affecting India. Investors should brace for volatility in the short term, but the underlying fundamentals of India’s growth story remain strong,” said  Amisha Vora, Chairperson & MD, Prabhudas Lilladher.

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

Election Results 2024

The Lok Sabha election results 2024 came as a negative surprise for the Indian stock market as the ruling BJP fell short of a full majority in the lower house of the parliament. However, Prime Minister Narendra Modi will return to power for the historic third consecutive term but with a lower margin. The BJP-led National Democratic Alliance (NDA) won around 295 seats, more than the 272 needed for the coalition to form the government.

Read Election Results 2024 Live Updates here

Gift Nifty Today

Gift Nifty was trading around 22,040 level, a premium of nearly 130 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.

Asian Markets

Asian markets traded mixed on Wednesday tracking overnight gains on Wall Street. 

Japan’s Nikkei 225 fell 1.14%, while the Topix declined 1.4%. South Korea’s Kospi gained 0.63% and the Kosdaq rose 0.21%. Hong Kong’s Hang Seng index futures indicated a weaker opening.

Wall Street

The US stock market ended higher on Tuesday after softer labor market data increased bets of an US Fed rate cut.

The Dow Jones Industrial Average gained 140.26 points, or 0.36%, to 38,711.29, while the S&P 500 rose 7.94 points, or 0.15%, to 5,291.34. The Nasdaq Composite ended 28.38 points, or 0.17%, higher at 16,857.05.

Among stocks,, Alphabet, Nvidia and Microsoft shares ended higher. Exxon Mobil shares fell 1.6% and Chevron shares eased 0.8%. Bath & Body Works stock price slumped 12.8%, while Axos Financial share price dropped 4.2%. Paramount Global shares declined 4.4%.

Also Read: Election Results 2024: Here’s what to expect from Indian stock market and what should be your trading strategy

US Job Openings

US job openings fell more than expected in April, pushing the number of available jobs per job-seeker to its lowest in nearly three years, Reuters reported. Job openings were down 296,000 to 8.059 million on the last day of April, the lowest level since February 2021, the Job Openings and Labor Turnover Survey, or JOLTS report said. That left 1.24 openings in April for every unemployed person, down from 1.3 in March and the lowest since June 2021. 

Treasury Yields

The US bond market rose after weak job openings data and the Treasury yields slipped. The yield of US 10-year treasury notes fell six basis points to 4.33%.

Also Read: Election Results 2024: FPI net sellers worth 12,436.22 crore in the markets: Experts expect near-term volatility

FII Selling

On Tuesday, Foreign institutional investors (FIIs) net sold Indian shares worth 12,436.22 crore, while Domestic Institutional Investors (DIIs) net sold shares to the tune of 3,318.98 crore, as per provisional data available on the exchanges.

Oil Prices

Crude oil prices extended losses for the sixth consecutive session after builds in US crude and fuel stockpiles. Brent crude futures fell 0.14% to $77.41 a barrel, while US West Texas Intermediate crude futures declined 0.23% to $73.08 a barrel.

(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: 05 Jun 2024, 07:18 AM IST

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