Indian Stock Market: 8 Key Overnight Changes as Asian Markets Surge on Fed Rate Cut Hopes

Asian markets traded positively, following gains in the US stock market after weak economic data increased hopes for interest rate cuts by the Federal Reserve.

In India, market sentiment improved after National Democratic Alliance (NDA) leaders pledged support for Narendra Modi’s Bharatiya Janata Party (BJP) to form a government for a third term.

On Wednesday, the Indian stock market saw a strong recovery with the main indices gaining over 3%. Investors were optimistic about political stability and supportive policies.

The Sensex jumped 2,303.19 points, or 3.20%, to close at 74,382.24, while the Nifty 50 rose 735.85 points, or 3.36%, to 22,620.35.

“We expect the market to focus on the formation of the government, particularly key cabinet positions like Finance, Defense, Roads, Energy, Commerce, and Railways. With the election behind us, attention should return to market fundamentals,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.

Key Market Indicators for Today:

1. Asian Markets:
   • Asian markets were up, following a rally on Wall Street driven by hopes of interest rate cuts.
   • Japan’s Nikkei 225 rose 1.12%, while the Topix increased by 0.65%. Hong Kong’s Hang Seng index showed signs of a weaker opening. South Korea’s markets were closed for a public holiday.
2. Gift Nifty:
   • Gift Nifty was trading around 22,680, indicating a positive start for Indian stock indices.
3. Wall Street:
   • The US stock market closed higher, with the S&P 500 and Nasdaq reaching record highs, led by tech stocks.
   • The Dow Jones gained 96.04 points, the S&P 500 rose by 62.69 points, and the Nasdaq increased by 330.86 points.
   • Notable stock movements: Nvidia rose 5.2%, overtaking Apple to become the second-most valuable company. Intel gained 2.5%, CrowdStrike jumped 11.9%, Hewlett Packard Enterprise rose 10.7%, while Dollar Tree dropped 4.9%.
4. Lok Sabha Election Results Update:
   • NDA members, including Nitish Kumar and Chandrababu Naidu, elected Narendra Modi as their leader. Modi is expected to claim the position of Prime Minister for a third term.
5. US Private Payrolls:
   • US private employers added 152,000 jobs in May, the lowest in four months, according to the ADP Employment report.
6. US Services PMI:
   • The US services sector grew in May after a brief contraction in April, with the ISM non-manufacturing PMI rising to 53.8 from 49.4 in April.
7. Treasury Yields:
   • US 10-year Treasury yields fell to a two-month low after weak jobs data. The 10-year note yields dropped by 5 basis points to 4.289%, and the two-year note yields fell by 4 basis points to 4.731%.
8. Oil Prices:
   • Crude oil prices rose for a second session despite Saudi Arabia’s concerns about demand.
   • Brent crude increased by 0.52% to $78.82 a barrel, and US West Texas Intermediate (WTI) crude rose by 0.66% to $74.56.