8 Key Overnight Shifts: Global Sell-off, US Tech Stocks Drop, and Rising Bond Yields Set to Weigh on Indian Markets

The Indian stock market, including the Sensex and Nifty 50, is expected to open lower on Tuesday after a sell-off in global markets.

1. Asian Markets Fall

Most Asian markets traded lower, following sharp losses in US markets. Japan’s Nikkei 225 fell 0.75%, South Korea’s Kospi dropped 0.61%, and Hong Kong’s Hang Seng index fell by over 3%. However, Chinese markets jumped 10% as they reopened after a long holiday.

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2. Gift Nifty Hints at Weak Opening

Gift Nifty was trading around 24,860, about 130 points lower than Nifty futures’ last close, suggesting a negative start for the Indian market.

3. US Stock Market Slump

US markets ended sharply lower due to a sell-off in tech stocks. The Dow Jones dropped 398.51 points (0.94%), the S&P 500 lost 55.13 points (0.96%), and the Nasdaq fell 213.94 points (1.18%). Big tech stocks like Alphabet, Apple, and Amazon saw significant losses, while companies like Generac Holdings and Air Products and Chemicals gained.

4. Bond Yields Rise

The 10-year US Treasury yield climbed above 4% for the first time in over two months as traders adjusted expectations for the Federal Reserve’s rate cuts. The yield reached 4.019%, signaling more market caution.

5. Foreign Outflows Impact Indian Markets

The Indian stock market continued to struggle, with the Sensex losing 638.45 points (0.78%) and the Nifty 50 falling by 218.85 points (0.87%) on Monday. Foreign investors withdrew ₹30,700 crore in just the first three days of October, contributing to market pressure.

6. Samsung Misses Expectations

Samsung Electronics reported a 274% rise in third-quarter operating profit, but it fell short of analysts’ estimates. The company’s preliminary operating profit was around 9.1 trillion won ($6.8 billion), compared to expectations of 10.3 trillion won.

7. Japan’s Economic Data

Japan’s real wages dropped 0.6% in August, ending two months of growth. Household spending also declined by 1.9% year-on-year, though it rose 2.0% from the previous month.

8. Oil and Gold Prices

Oil prices dipped slightly after hitting a one-month high on Monday. Brent crude futures were down 0.3%, while US West Texas Intermediate also dropped 0.3%. Gold prices remained steady as investors awaited the release of US Federal Reserve meeting minutes.