Indian Stock Market: 8 Key Things That Changed for the Market Overnight

Indian Stock Market: The Indian stock market is expected to open on a cautious note on Tuesday, following mixed global signals.

Asian markets traded higher, while U.S. stock indexes ended on a mixed note overnight as investors awaited key U.S. inflation data that will influence the Federal Reserve’s monetary policy.

On Monday, Indian stock indices ended with sharp losses amid heavy selling by heavyweights in the banking and financial sector, ahead of key macroeconomic figures and mixed global signals.

THE Sensex plunged 523.00 points, or 0.73 per cent, to close at 71,072.49, while the Nifty 50 settled 166.45 points, or 0.76 per cent, down at 21,616.05.

“The premium valuation gap between mid- and large-caps has reached an all-time high. Despite strong economic forecasts, corporate profits are expected to slow due to moderate operating margins. It will be difficult for the entire market to maintain a premium valuation. Large caps are expected to excel amid consolidation,” said Vinod Nair, head of research at Geojit Financial Services.

Here are the major domestic and global market indices for Sensex today:

Asian markets

Asian markets traded higher on Tuesday as more markets resumed trading following the Lunar New Year holiday.

Japan’s Nikkei 225 index rose 1.82%, crossing the 37,000 mark to reach its highest level in 34 years, while the Topix jumped 1.02%. The South Korean Kospi gained 1.16% and the Kosdaq 1.28%.

Chinese markets are closed for the week due to the Lunar New Year holiday. The Hong Kong market is also closed.

Awesome gift today

Gift Nifty was trading around the 21,735 level, compared to 21,696 for the previous close of Nifty futures, indicating a marginally positive start for Indian stock indices.

Wall Street

US stock indexes ended on a mixed note on Monday as markets awaited key inflation data that will influence the US Fed’s monetary policy.

The Dow Jones Industrial Average gained 135.76 points, or 0.35%, to 38,807.45, while the S&P 500 fell 4.12 points, or 0.08%, to end at 5,022.49 points. The Nasdaq Composite closed down 42.74 points, or 0.27%, at 15,947.92.

During the session, Nvidia’s market capitalization surpassed Amazon’s as euphoria around AI propelled the chipmaker to the fourth most valuable U.S. company, but ended the day behind the online retailer, Reuters reported.

Nvidia shares ended the day up 0.16%, while Amazon fell 1.2%.

Inflation in India

India’s retail inflation rate slowed to a three-month low of 5.10% in January 2024 from 5.7% in December 2023, according to data released by the Ministry of Statistics and Program Implementation (MoSPI).

IIP Growth

India’s industrial production growth increased marginally to 3.8% in December 2023 from 2.4% in November 2023. For the period April-December 2023, the Index of Industrial Production (IIP) stood at 6.1% compared to 5.5% in April-December 2022, according to the report. data released by the Ministry of Statistics and Program Implementation on February 12.

Arm’s stock rally boosts SoftBank stock

Shares of Arm Holdings jumped 29% on Monday, adding to a stunning rally fueled by optimism around artificial intelligence. Arm’s stock price has gained more than 90% since reporting its financial results on Feb. 7, with its quarterly outlook beating Wall Street expectations.

SoftBank Group shares jumped for a third day, boosted by Arm Holdings’ rally. SoftBank retained a roughly 90% stake in Arm when the company went public last year. SoftBank stock gained as much as 11% on Tuesday, reaching its highest level since May 2021.

Corporate inflation in Japan

Japan’s corporate goods price index rose 0.2 per cent in January from a year earlier, beating the 0.1 per cent expected by economists polled by Reuters. Every month, corporate inflation in Japan slowed from 0.3% in December.

Bitcoin price hits $50,000

The price of Bitcoin has reached $50,000 for the first time in more than two years, as the cryptocurrency’s value has tripled since the start of last year. Bitcoin last traded at $50,000 in December 2021.

The price of the world’s largest cryptocurrency rose 0.3% to $49,975, while Ether rose 1.5% to $2,670.80.

(With contributions from agencies)

Disclaimer: The opinions and recommendations stated above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to seek advice from certified experts before making any investment decisions.

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