Indian stock market: 8 key things that changed for market over weekend – Gift Nifty, US nonfarm payrolls to oil prices

    Indian stock market: Indian equity benchmark indices, Sensex and Nifty 50, are expected to open on a tepid note Monday tracking mixed cues from global peers.

    Asian markets traded mixed, while the US stock market ended at record levels last week led by a rally in megacap tech stocks.

    Data showed US jobs growth slowed marginally in June, and the unemployment rate rose to an over 2-1/2-year high, while wage gains slowed, Reuters reported.

    Analysts expect the data could stir more active debate on rate cuts in the upcoming US Federal Reserve meeting later this month. Traders are currently expecting two interest rate cuts in 2024, with the first in September, CME’s FedWatch Tool showed.

    Also Read | Buy or sell: Vaishali Parekh recommends three stocks to buy today — July 8

    On Friday, the Indian stock market benchmark indices ended mixed amid selling in heavyweights.

    The Sensex dropped 53.07 points, or 0.07%, to close at 79,996.60, while the Nifty 50 settled 21.70 points, or 0.09%, higher at 24,323.85.

    “After a run-up of ~7% in the last month we expect the market to consolidate at a higher zone. This week, we expect stock and sector-specific action as the market starts taking cues from Q1FY25 earnings. On the macro front, investors will look out for inflation data that will be released by India, the US, and China,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

    Market participants will now eye any Union Budget-related or government policy announcements, the first set of Q1 results, corporate announcements, flow of foreign funds, trends in crude oil prices, domestic and global macroeconomic data, and other key global cues that will drive market movement this week.

    Also Read | Week Ahead: Inflation data, Q1 Results, Budget updates to guide market this week

    Here are key global market cues for Sensex today:

    Asian Markets

    Asian markets traded mixed on Monday ahead of key economic data from the US and China later this week.

    Japan’s Nikkei 225 fell marginally, while the Topix declined 0.17%. South Korea’s Kospi gained 0.21% and the Kosdaq rose 0.42%. Hong Kong Hang Seng index futures indicated a lower opening.

    Gift Nifty Today

    Gift Nifty was trading around 24,386 level, indicating a flat start for the Indian stock market indices.

    Wall Street

    US stock market closed higher on Friday, with the tech-heavy Nasdaq and benchmark S&P 500 hitting record highs.

    The Dow Jones Industrial Average gained 67.87 points, or 0.17%, to close at 39,375.87, while the S&P 500 rallied 30.17 points, or 0.54%, to 5,567.19. The Nasdaq Composite ended 164.46 points, or 0.90%, higher at 18,352.76.

    For the week, the S&P 500 gained 1.95%, the Nasdaq rose 3.5% pct, and the Dow climbed 0.66%.

    Megacap stocks such as Microsoft shares rose nearly 1.5% to end at a record high, while Meta Platforms stock price also hit an all-time closing high after rallying around 5.9%.

    Banking stocks declined, with the Bank of America, Wells Fargo and JPMorgan & Chase shares dropping between 1.2% to 1.7%.

    Also Read | Wall Street week ahead: Spotlight on consumer inflation, Powell’s testimony

    US Nonfarm Payrolls

    US employment increased solidly in June, but the unemployment rate hit a 2-1/2-year high of 4.1%, pointing to a slackening labor market. The Labor Department’s closely watched employment report also showed the economy created 111,000 fewer jobs in April and May than previously estimated.

    Nonfarm payrolls increased by 206,000 jobs last month, lifted by government hiring. Economists polled by Reuters had forecast payrolls would increase by 190,000 last month.

    Also Read | US labor market losing steam as unemployment rate climbs to 4.1%

    Oil Prices

    Crude oil prices traded mixed ahead of reports from OPEC and the IEA this week.

    Brent crude futures fell 0.14% to $86.42 a barrel after four weeks of gains, while West Texas Intermediate (WTI) crude futures prices declined 0.30% to $82.91 a barrel.

    Japan Real Wages

    Japan’s inflation-adjusted real wages fell in May for a record 26th straight month, Reuters reported. Real wages fell 1.4% in May, government data showed, faster than April’s 1.2% decline, as a weakening yen and higher commodity prices pushed up the cost of imports. Japan’s base pay increased 2.5% in May from a year ago, the fastest growth since 1993, outpacing the 1.9% gain in the headline figure.

    China’s Central Bank

    The People’s Bank of China (PBOC) will carry out temporary bond repurchase or reverse repurchase operations depending on the market situation during working days. The central bank aims to maintain reasonable and sufficient liquidity in the banking system, it said.

    Also Read | China’s Central Bank to Add Temporary Repos Depending on Market Conditions

    Dollar, Treasury Yields

    The dollar index, a measure of the US currency’s value versus six major currencies, was up 0.12% to 105.00. The US dollar fell last week, recording its first drop in the past seven weeks. US Treasury 10-year yields fell eight basis points to 4.28% on Friday as traders priced the prospect of two Fed rate cuts this year.

    (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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