Indian stock market: 12 things that changed for market overnight- Gift Nifty, US inflation to Trump’s reciprocal tariffs

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a tepid note on Thursday tracking mixed cues from global markets.

Asian markets traded higher, while the US stock market ended mixed overnight after hotter-than-expected inflation data.

On Wednesday, the Indian stock market ended volatile session lower, extending its decline for the sixth consecutive session.

The Sensex fell 122.52 points, or 0.16%, to close at 76,171.08, while the Nifty 50 settled 26.55 points, or 0.12%, lower at 23,045.25.

“Markets were extremely choppy and gyrated sharply in intra-day trades. After crashing over 900 points in early trades, markets recouped lost ground in late trades but select profit-taking in IT, banking and auto stocks saw benchmarks end marginally lower. Due to rising uncertainty in global and domestic markets coupled with falling rupee and fund outflows, investors are trading cautiously and placing safe equity bets,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Thursday, as against overnight fall on Wall Street.

Japan’s Nikkei 225 rose 0.54% while the Topix gained 0.52%. South Korea’s Kospi added 0.34%, while the Kosdaq advanced 0.45%. Hong Kong’s Hang Seng index indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 23,140 level, a premium of nearly 18 points from the Nifty futures’ previous close, indicating a flat-to-positive start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Wednesday after a hotter-than-expected inflation reading.

The Dow Jones Industrial Average fell 0.50% to 44,368.56, while the S&P 500 dropped 0.27% to 6,051.97. The Nasdaq closed 0.03% higher at 19,649.95.

Nvidia shares and Amazon shares fell more than 1%, while CVS Health stock price jumped 15% and Gilead Sciences share price surged 7.5%. Lyft shares declined 8%. In extended trade, Robinhood Markets stock price gained 5%.

US Inflation

US consumer prices increased more than expected in January. The consumer price index jumped 0.5% last month after gaining 0.4% in December. In the 12 months through January, the CPI increased 3.0% after advancing 2.9% in December. Economists polled by Reuters had forecast the CPI gaining 0.3% and rising 2.9% year-on-year.

India CPI Inflation, IIP

India’s retail inflation fell to a five-month low of 4.31% in January, mainly due to a decline in food prices. The Consumer Price Index (CPI)-based retail inflation was 5.22% in December and 5.1% in January 2024.

India’s industrial production growth slowed to a three-month low in December 2024. The country’s factory output, measured in terms of the Index of Industrial Production (IIP), grew by 3.2% in December 2024 as against the IIP growth of 4.4% in December 2023.

Trump Tariff

US President Donald Trump said he would impose reciprocal tariffs as soon as Wednesday evening on every country that charges duties on US imports, Reuters reported. The Trump administration has complained that India has high tariffs that lock out US imports.

Jerome Powell Testimony

US Federal Reserve Chairman Jerome Powell told the House Financial Services Committee that the latest consumer price data show that while the central bank has made substantial progress toward taming inflation, there is still more work to do. “I would say we’re close, but not there on inflation,” Powell said.

NCDEX to enter Equity segment

The National Commodity & Derivatives Exchange Limited (NCDEX) announced its entry into the equity and equity derivatives segment. The Board of Directors of NCDEX at its meeting held on Wednesday, approved the launch of Equity and Equity Derivatives segment in the Exchange based on a feasibility study and business plan prepared for the same.

Japan WPI

Japan’s annual wholesale inflation jumped to 4.2% in January, accelerating for the fifth straight month. The rise in the corporate goods price index (CGPI) exceeded a median market forecast for a 4.0% increase and followed a revised 3.9% increase in December.

US Dollar

The dollar index, which measures the greenback against the yen, euro and other peers, ticked 0.03% lower to 107.88, after touching a one-week high of 108.52 in the previous session, Reuters reported. Against the yen, the dollar was down 0.06% at 154.33, the euro edged up 0.14% to $1.0398, while Sterling stood at $1.2456, up 0.09%.

Gold Price Today

Gold prices rose on Thursday ahead of the Producer Price Index (PPI) data due later in the day. Spot gold rose 0.1% to $2,905.12 per ounce, after prices dropped more than 1% in the previous session. US gold futures were steady at $2,929.60.

Crude Oil Prices

Crude oil prices held the biggest decline in more than two months after President Donald Trump and Vladimir Putin agreed to talks on ending the Ukraine war.

Brent crude oil declined 0.77% to $74.60 a barrel, while the US West Texas Intermediate (WTI) crude futures fell 0.78% to $70.81, after losing 2.7% in the previous session.

(With inputs from Reuters)

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