6 Big Overnight Changes in Global Markets Impacting Sensex and Nifty Today

The Indian stock market, including Sensex and Nifty 50, is expected to open higher today, Thursday, after a mixed performance in global markets. On Wednesday, Indian stocks dropped, with Sensex down 202.80 points and Nifty 50 closing 81.15 points lower.

Key Market Shifts:

Asian Markets Rebound:

After a major global sell-off, Asian markets bounced back. The MSCI Asia Pacific Index gained 0.5%, and South Korea’s Kospi index rose over 1%, thanks to strong performance from chipmakers. Japan’s stocks fluctuated, with the yen staying strong due to unexpected wage increases, boosting chances of another rate hike by the Bank of Japan.

Gift Nifty Positive Start:

At 7:22 AM IST, Gift Nifty was trading 116 points higher than the previous close of Nifty futures, suggesting a good start for the Indian market.

Wall Street Falls Again:

U.S. markets continued their slump with the S&P 500 dropping 0.2% and Nasdaq down 0.3%, driven by losses in tech and energy stocks. However, Dow Jones rose slightly by 0.1%. Weak job openings in the U.S. sparked concerns about the economy and fueled hopes for an interest rate cut from the Federal Reserve.

Yen Gains Pressure Japanese Stocks:

The yen’s rise, due to increased real wages, continued to strengthen, affecting Japanese stocks. The Nikkei 225 index fell by 0.5%, while the yen hit a new one-week high against the U.S. dollar.

Dollar Weakens:

U.S. payroll data hinted at a slowing job market, increasing the chances of a rate cut by the Federal Reserve. This caused the dollar to slip 0.3% against major currencies, and it fell 1% against the yen.

Crude Oil Drops:

Oil prices fell by over $1 per barrel on Wednesday. Brent crude dropped by $1.05, closing at $72.70, while U.S. crude fell by $1.14 to settle at $69.20. Traders reacted to mixed signals from OPEC on potential production increases.

These global shifts are likely to influence the Indian stock market today, with a positive start expected.