Indian stock market: 10 key things that changed for market overnight - Gift Nifty, India-US trade talks to Tesla shares

Indian stock market: The equity market benchmark indices, Sensex and Nifty 50, are expected to open on a muted note Tuesday, following mixed global market cues.

Asian markets traded with gains, while the US stock market ended higher overnight, as investors await the Federal Reserve’s crucial policy meeting this week.

The Federal Open Market Committee (FOMC) is widely expected to cut interest rates by 25 basis points in its meeting on September 16 and 17. Traders on Monday are pricing in a 96% chance of a 25-basis-point cut.

On Monday, the Indian stock market indices ended lower amid cautiousness ahead of the US Federal Reserve policy this week.

The Sensex declined 118.96 points, or 0.15%, to close at 81,785.74, while the Nifty 50 settled 44.80 points, or 0.18%, lower at 25,069.20.

“We recommend maintaining a positive yet cautious stance, with an emphasis on stock selection aligned to rotational sectoral trends and themes such as defense and railways for long positions,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Here are key global market cues for Sensex today:

Asian markets traded higher on Tuesday on optimism that US-China trade talks were progressing well. Japan’s Nikkei 225 index gained 0.28%, while Topix rose 0.29% to an all-time high. South Korea’s Kospi ralied 0.78% and the Kosdaq was flat. Hong Kong’s Hang Seng Index futures indicated a higher opening.

Gift Nifty was trading around 25,161 level, a discount of nearly 3 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.

US stock market ended higher on Monday with the S&P 500 and the Nasdaq notching intraday record high closes.

The Dow Jones Industrial Average gained 49.23 points, or 0.11%, to 45,883.45, while the S&P 500 rose 30.99 points, or 0.47%, to 6,615.28. The Nasdaq Composite closed 207.65 points, or 0.94%, higher at 22,348.75.

Tesla share price rallied 3.6%, Alphabet shares jumped 4.49% to hit a record high and raced past $3 trillion in market capitalization. Nvidia stock price fell 0.04%, Meta Platforms shares gained 1.21%, Apple stock rose 1.12%, while CoreWeave shares jumped 7.6%.

Tesla share price stock gained 3.62% to $410.26 apiece after CEO Elon Musk disclosed the purchase of more than 2.5 million shares worth approximately $1 billion. Musk purchased various amounts of shares at different prices on Friday, according to a regulatory filing.

India will resume trade discussions with the US today, as Washington’s chief negotiator Brendan Lynch will meet his Indian counterpart, Rajesh Agrawal, special secretary in the commerce department, to advance negotiations for a bilateral trade agreement.

US President Donald Trump said that trade talks with China had “gone very well” and suggested that a deal had been reached to resolve US concerns over TikTok’s ownership.

The unemployment rate in India declined marginally in August to 5.1%. The rate fell for the second month in a row from 5.2% in July and 5.6% in June, according to the statistics ministry's monthly Periodic Labour Force Survey (PLFS).

Crude oil prices extended gains amid worries over potential supply disruption from Russia after Ukrainian drone attacks on its refineries. Brent crude futures rose 0.19% to $67.57 a barrel, while US West Texas Intermediate crude gained 0.17% to $63.41.

The dollar traded near a 2-1/2 month low against the euro and was just shy of a more than two-month low on the British pound as investors cemented bets for a Federal Reserve interest rate cut this week and more to follow. The euro was at $1.1765, and Sterling was steady at $1.3605. The US dollar was flat at 147.42 yen.

Gold prices hit a record high, supported by a weaker dollar ahead of the Fed policy meeting this week. Spot gold price rose 0.1% to $3,680.17 per ounce , while US gold futures for December delivery were flat at $3,718.80.

(With inputs from Reuters)

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