Indian stock market: 8 key things that changed for market overnight Gift Nifty, US bond yields to China policy easing

Indian stock market: The equity benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday, rebounding from previous session’s steep losses, amid supported global market cues. Asian markets traded higher while the US stock market ended in the green as fall in Treasury yields supported the equity rally after a US Federal Reserve official offered potential backing for rate cuts.

Investors will look ahead for the inflation data and corporate earnings release this week for further cues. The domestic equity benchmarks ended with significant losses on Monday amid weak global cues, as investors opted to book profits ahead of the release of inflation data and crucial earnings reports scheduled for this week.

The declined 670.93 points, or 0.93%, to close at 71,355.22, while the Nifty 50 ended 197.80 points, or 0.91%, lower at 21,513.00. “Better than expected US job data last Friday, led to the concerns that the US Fed might delay the rate cut. In this context, the inflation data from the US, China and India due this week will be of key importance.

This led to a rise in the dollar index along with the 10 year bond yield. Thus, overall sentiments are currently subdued in the market and could lead to more consolidation over the next few days," said Siddhartha Khemka, Head Retail Research, Ltd. Here are key global market cues for Sensex today: Asian Markets Asian markets rebounded to trade higher on Tuesday following overnight rally on Wall Street.

Japan’s Nikkei 225 rallied 1.66% and the Topix rose 0.93%. South Korea’s Kospi gained 0.7%, while the Kosdaq added 0.91%. Hong Kong’s Hang Seng index futures indicated a higher start. Gift Nifty Gift Nifty traded around 21,695 level as against Nifty futures’ previous close of 21,570, signaling a positive start for the Indian stock market indices.

US Stock Market US stock market indices ended sharply higher on Monday led by a rally in megacap stocks amid a fall in Treasury yields. The Dow Jones Industrial Average gained 216.90 points, or 0.58%, to 37,683.01, while the S&P 500 rose 66.30 points, or 1.41%, to 4,763.54. The Nasdaq Composite ended 319.70 points, or 2.20%, higher at 14,843.77.

Among stocks, Amazon shares closed 2.66% higher and Alphabet stock price gained 2.29%. Apple share price rallied 2.42%, Nvidia surged 6.3% and Advanced Micro Devices jumped 5.48%. Nvidia shares at record high Nvidia share price surged to a record high close after the company unveiled new desktop graphics processors taking advantage of artificial intelligence.

Nvidia shares jumped 6.4% to end at $522.53, its highest close ever, after the company announced the GeForce RTX 40 SUPER Series of graphics processors. The world’s most valuable chipmaker Nvidia’s stock price more than tripled in 2023. Nvidia’s stock market value now stands at nearly $1.3 trillion.

Boeing shares plunges 8% Boeing shares plunged 8.03% to 229.00 after the plane maker and US regulators gave the go ahead on Monday for airlines to inspect jets that were grounded after a panel blew off an Alaska Airlines operated 737 MAX 9 in mid flight which forced a dramatic landing of the airliner over the weekend.

Wall Street analysts viewed the accident as a temporary setback to Boeing, but some took a dim view of the incident as another in a series of quality problems related to the 737 MAX family of aircraft, Reuters reported. Dollar pulls back, Treasury yields fall The US dollar declined on Tuesday amid rising bets of a slew of Federal Reserve rate cuts this year on slowing US inflation.

The US dollar eased slightly by 0.08% to 102.22 against a basket of currencies, having risen 1% last week. Treasury yields fell ahead of readings on inflation and a new supply of government debt this week, with the benchmark 10 year US Treasury yield hitting a low of 3.966% in the previous session. Fed’s Bowman backs eventual rate cuts US Federal Reserve Governor Michelle Bowman said inflation could fall toward the Fed’s 2% target with interest rates held at current levels, and offered potential backing for lowering borrowing costs if price pressures fade, Bloomberg News reported.

“Should inflation continue to fall closer to our 2% goal over time, it will eventually become appropriate to begin the process of lowering our policy rate to prevent policy from becoming overly restrictive," Bowman said in prepared remarks at an event. China hints at more policy easing Chinese authorities indicated a possible cut in the reserve ratio, the amount of money banks must set aside as reserves to boost lending.

In an interview with state run Xinhua News Agency, Zou Lan, head of the People’s Bank of China’s (PBOC) monetary policy department said that the PBOC may use open market operations, medium term lending facilities and reserve requirements among other monetary policy tools to provide “strong" support for reasonable growth in credit.

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