Indian stock market: 7 things that changed for market over weekend – Gift Nifty to US nonfarm payrolls
The Asian markets traded mixed while the US stock market ended marginally higher as investors remained cautious over the trajectory of interest rate cuts going ahead, with an eye on key economic data releases.
This week, the market is poised to be influenced by several factors, including the commencement of the third-quarter earnings season, inflation data, and other specific triggers affecting individual stocks.
On Friday, the domestic equity indices ended with gains for the second consecutive session. The Sensex closed the day 178.58 points, or 0.25%, higher at 72,026.15, while the Nifty 50 settled at 21,710.80, up 52.20 points, or 0.24%.
“Healthy pre-quarterly business updates indicate that the earnings growth momentum is likely to continue in Q3 as well. Overall we expect markets to remain in a positive range. Stock-specific action will gather pace with the start of the earning season,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 8
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded little higher on Monday ahead of the key economic data releases this week with inflation reports from the US, Japan and China.
MSCI’s broadest index of Asia-Pacific shares outside Japan barely changed, having retreated 2.5% last week.
Japan’s markets are closed for a public holiday. South Korea’s Kospi gained 0.34%, while the Kosdaq eased 0.08%. Hong Kong’s Hang Seng index futures pointed to a higher open.
Australia’s S&P/ASX 200 rose 0.17%.
Gift Nifty
Gift Nifty was trading around 21,791 level as compared to Nifty futures’ previous close of 21,785, indicating a flat start for the Indian stock market indices.
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US Stock Market
The US stock market indexes ended marginally higher on Friday but posted their worst week in months. All three benchmarks recorded their first weekly declines for ten weeks as investors remained cautious as they await further clarity on when interest rate cuts will begin, and how quickly they will happen.
The Dow Jones Industrial Average gained 25.77 points, or 0.07%, to 37,466.11, while the S&P 500 rose 8.56 points, or 0.18%, to end at 4,697.24 points. The Nasdaq Composite closed 13.77 points, or 0.09%, higher at 14,524.07.
Among stocks, large regional banks, Zions Bancorporation, Citizens Financial Group and Comerica Inc all gained between 2.6% and 3.3%.
Applied Therapeutics plunged 40.6%, Palantir Technologies fell 1.7%, while Peloton rallied 9.6%.
US Nonfarm Payrolls
US employers hired more workers than expected in December while raising wages at a solid clip. The US nonfarm payrolls increased by 216,000 jobs last month, the Labor Department’s Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls rising by 170,000 jobs. The economy added 2.7 million jobs in 2023, a sharp step-down from the 4.8 million positions created in 2022.
US Services Sector
The US services sector slowed considerably in December, with a measure of employment dropping to the lowest level in nearly 3-1/2 years, a survey showed. The Institute for Supply Management (ISM) said that its non-manufacturing PMI fell to 50.6 last month, the lowest reading since May, from 52.7 in November. Economists polled by Reuters had forecast the index little changed at 52.6.
India’s GDP growth estimates
India’s economy is projected to grow at 7.3% in the ongoing financial year, as per the initial advance estimate report released by the National Statistical Office (NSO). At that pace, India will retain its crown as the fastest-growing major economy, following its 7.2% GDP growth in FY2022-23.
Read here: India’s GDP likely to grow by 7.3% in FY24: NSO data
Sebi allows short-selling
The Securities Exchange Board of India (SEBI) said that investors across all categories would now be allowed for short-selling, however, it denied permission for naked short-selling. The capital markets regulator also informed that all stocks that trade in the futures and options segment are eligible for short-selling. Moreover, Sebi prohibited institutional investors from engaging in day trading.
(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.
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Published: 08 Jan 2024, 07:02 AM IST
