6 things that changed for the stock market overnight – Gift Nifty, US jobless claims to drop in crude oil prices
The mid-week rally in the markets seen on the back of rising hopes that the US Federal Reserve will not hike interest rates further and pivot to a rate cut in early 2024, seems to be waning.
Moreover, with the conclusion of the earning season, domestic investors will now shift the focus to global as well as domestic cues.
The Indian benchmark indices ended higher for the second consecutive session on Thursday amid mixed global cues.
The Sensex surged by 306.55 points, or 0.47%, to close at 65,982.48, while the Nifty 50 ended 89.75 points, or 0.46%, higher at 19,765.20.
“We expect positive momentum to continue in the market with sectoral rotation given the healthy macro data and receding global concerns. On economic data points, investors will look for Europe inflation data,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Friday following a weak trend on Wall Street overnight as the mid-week rally lost steam.
Japan’s Nikkei 225 fell 0.21% and the Topix eased 0.11%. South Korea’s Kospi dropped 0.55%, while the Kosdaq dipped 0.71%.
Hong Kong’s Hang Seng index futures traded lower at 17,654, compared to the HSI’s close of 17,832.82.
Gift Nifty was trading around 19,812 level as against Nifty futures’ previous close of 19,835, indicating a negative start for the Indian benchmark indices.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — November 17
Wall Street
US stock market indices ended mixed on Thursday with the S&P 500 and the Nasdaq seeing tiny gains while the Dow Industrial Average ending slightly lower pressurized by tech and retail bellwethers.
The Dow Jones Industrial Average declined 45.74 points, or 0.13%, to 34,945.47, while the S&P 500 rose 5.36 points, or 0.12%, to 4,508.24. The Nasdaq Composite ended 9.84 points, or 0.07%, higher at 14,113.67.
Among stocks, Cisco Systems shares tanked 9.8% after the company cut its full-year revenue and profit forecasts on slowing demand for its networking equipment. Palo Alto Networks shares declined 5.4%.
Walmart shares plunged 8.1% a day after touching a record high.
US jobless claims hit three-month high
The number of Americans filing new claims for unemployment benefits increased to a three-month high last week. Initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 231,000 for the week ended November 11, the highest since August, showed the weekly jobless claims report from the Labor Department.
Economists polled by Reuters had forecast 220,000 claims for the latest week. Claims are in the middle of their 194,000-265,000 range for this year. Unadjusted claims increased 1,713 to 215,874 last week.
Oil prices slump to 4-month low
Crude oil prices dropped around 5% on Thursday to their lowest in four months, amid worries over global oil demand following weak data from the US and Asia, Reuters reported.
Read here: Oil prices drop over $3 on China’s demand concerns, US crude stock; Brent crashes to $78/bbl
Brent futures ended $3.76, or 4.6%, lower at $77.42 a barrel, while US West Texas Intermediate crude (WTI) declined $3.76, or 4.9%, to close at $72.90. Both Brent and WTI earlier traded at their lowest since July 7, at $76.60 and $72.16, respectively.
US manufacturing output falls in October
US factory production fell more than expected in October, largely led by strikes at automakers and parts suppliers.
Manufacturing output fell 0.7% last month, the most in four months, the Federal Reserve data showed. Economists polled by Reuters had forecast factory output dropping 0.3%.
Excluding autos, manufacturing rose 0.1%. Production at factories declined 1.7% on a year-on-year basis in October.
RBI tightens consumer loan norms
The Reserve Bank of India (RBI) tightened norms for personal loans and credit cards in the form of higher capital requirements. The central bank has raised the risk weights for lenders and non-bank financial companies (NBFCs), or the capital that banks need to set aside for every loan, by 25 percentage points to 125% on retail loans.
(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 taking any investment decisions.
