Stock Market Update: 6 Big Changes You Need to Know Before Trading Today – Gift Nifty, Gold, and More

The Indian stock market is expected to open flat on Wednesday, with both Sensex and Nifty 50 likely to show limited movement due to mixed global market sentiment. Factors contributing to this uncertainty include the upcoming US Presidential elections in 2024, ongoing conflicts in the Middle East, weak second-quarter (Q2) 2024 earnings, and continuous selling by foreign institutional investors (FIIs). This has led to a sharp correction in the Indian stock market.

On Tuesday, Indian stock indices witnessed significant sell-off pressure, ending sharply lower by more than 1% each. The Sensex fell by 930.55 points, or 1.15%, closing at 80,220.72, while the Nifty 50 dropped by 309.00 points, or 1.25%, to settle at 24,472.10.

Siddhartha Khemka, Head of Research for Wealth Management at Motilal Oswal Financial Services Ltd, commented on the market weakness: “Rising US bond yields, along with expectations of a modest rate cut by the US Federal Reserve, led to global market weakness and fund outflows from emerging markets like India. Q2 earnings are also showing signs of slowing down, which has hurt investor sentiment. We expect market pressure to continue, driven by results-related actions, but investors can adopt a ‘buy on dips’ strategy to accumulate quality stocks.”

Here are six major global market updates for the Indian stock market today:

1. Asian Markets

Asian markets traded mixed on Wednesday, reflecting a cautious attitude among investors. Japan’s Nikkei 225 remained mostly flat, while the broader Topix index saw a slight decline. In contrast, South Korea’s Kospi rose by 0.25%, and the tech-heavy Kosdaq climbed 0.51%. Futures for Hong Kong’s Hang Seng index pointed towards a stronger open.

2. Gift Nifty

Gift Nifty, a leading indicator for the Indian market, was trading around the 24,540 level early on Wednesday, indicating a flat start for Indian stock indices. This figure shows a slight premium of around 2 points from the Nifty futures’ previous close, signaling limited volatility for the day’s opening session.

3. Wall Street Performance

US stock markets closed relatively unchanged overnight, with only minor fluctuations despite spikes in Treasury yields. The Dow Jones Industrial Average eased slightly by 6.71 points, or 0.02%, ending at 42,924.89. Meanwhile, the S&P 500 dipped by 2.78 points, or 0.05%, to finish at 5,851.20. The Nasdaq Composite, however, gained 33.12 points, or 0.18%, to settle at 18,573.13.

Several notable moves in the US stock market included:

• GE Aerospace: The stock price slumped by 9%.
• Microsoft: Shares rose by 2.08%.
• Verizon: Stock declined by 5.03%.
• 3M: Share price fell by 2.31%.
• General Motors: Stock jumped by 9.81%.
• Lockheed Martin: Shares dropped by 6.12%.

4. Gold Prices

Gold prices surged to a new record high due to heightened uncertainty surrounding both the Middle East conflicts and the upcoming US Presidential elections. Spot gold remained relatively steady at $2,746.25 per ounce, after hitting an all-time high of $2,749.07 earlier in the trading session. Meanwhile, US gold futures gained slightly, rising by 0.1% to $2,761.4 per ounce.

5. Oil Prices

Crude oil prices experienced a dip after data revealed that US crude inventories had grown more than expected. This increase in supply contributed to the downward pressure on oil prices. Brent crude futures dropped by 0.4%, settling at $75.73 per barrel, while US West Texas Intermediate (WTI) crude futures fell by 0.5% to $71.42 per barrel.

6. US Dollar and Treasury Yields

The US dollar strengthened to a fresh 2.5-month high, while Treasury yields spiked to levels not seen since July. These moves were driven by mounting global uncertainty ahead of the US Presidential elections, along with the outlook on future interest rate cuts. US 10-year Treasury yields hovered near 4.2% after briefly crossing that level for the first time since July.

The dollar index, which measures the US dollar’s value against a basket of other currencies including the euro and yen, increased by 0.13% to 104.09. Earlier, it had hit a high of 104.10, its highest level since August 2.