Indian stock market: 7 key things that changed for market over weekend – Gift Nifty, Modi 3.0 to US nonfarm payrolls
Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open on a tepid note Monday tracking mixed cues from global peers.
Asian markets traded mixed, while the US stock market eased last week, after stronger US jobs data pushed forward hopes of interest rate cuts from the US Federal Reserve.
Traders now see a 56% chance of a September rate reduction, according to the CME’s FedWatch tool, Reuters reported.
Meanwhile, the Indian stock market is also likely to react to the formation of the new government as Narendra Modi and his 71 ministers took oath of office and secrecy on Sunday.
On Friday, the Indian stock market indices ended at their fresh closing highs, extending gains into the third consecutive session, after the Reserve Bank of India (RBI) kept the repo rate and policy stance unchanged while raising the GDP estimates for FY25 and retaining the inflation target.
The Sensex jumped 1,618.85 points, or 2.16%, to close at 76,693.36, while the Nifty 50 settled 468.75 points, or 2.05%, higher at 23,290.15.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — June 10
“Now hopes have revived that the US Federal Reserve might cut interest rates in the September meet based on recent macro data points. This week, focus will be on allocation of key cabinet portfolios such as Finance, Defense, Roads, Energy, Commerce, and Railways. The market will continue to be volatile with upward biasedness,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
This week, stock market investors will watch out for global and domestic triggers including the US Federal Reserve policy, Bank of Japan interest rate decision, US inflation data, India’s retail inflation data, and key policy decisions of the BJP-led coalition government.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Monday ahead of key economic data from the region.
Japan’s Nikkei 225 gained 0.19%, while the Topix rose 0.38%. South Korea’s Kospi fell 1% and the Kosdaq dropped 0.5%. Stock markets in mainland China, Hong Kong, Taiwan and Australia are closed today.
Gift Nifty Today
Gift Nifty was trading around 23,290 level, a discount of nearly 40 points from the Nifty futures’ previous close, indicating a weak start for the Indian stock market indices.
Also Read: Buy or sell: Sumeet Bagadia recommends these three stocks for Monday – June 10
Wall Street
The US stock market ended slightly lower on Friday in choppy trading after stronger US jobs data raised worries the Federal Reserve may wait longer to cut interest rates.
The Dow Jones Industrial Average declined 87.18 points, or 0.22%, to 38,798.99, while the S&P 500 eased 5.97 points, or 0.11%, to 5,346.99. The Nasdaq Composite ended 39.99 points, or 0.23%, lower at 17,133.13.
For the week, the S&P 500 gained 1.32%, Nasdaq rallied 2.38%, and the Dow rose 0.29%.
Among stocks, GameStop shares plunged 39%, while AMC Entertainment share price cracked 15.2% and Koss Corp shares tanked 17.4%.
Nvidia stock price eased, with its valuation again dipping below the $3 trillion mark. Lyft shares rose 0.6.
Also Read: Wall Street week ahead: All eyes on Federal Reserve monetary policy decisions, inflation data
US Nonfarm Payrolls
US Nonfarm payrolls increased by 272,000 jobs last month, the Labor Department’s Bureau of Labor Statistics said. Revisions showed 15,000 fewer jobs created in March and April combined than previously reported. Economists polled by Reuters had forecast payrolls advancing by 185,000. May’s employment gains were higher than the 232,000 monthly average for the past year.
Modi 3.0 Takes Oath
Narendra Modi was sworn-in as Prime Minister for the third consecutive term, along with his 71 ministers, on Sunday evening. In the new coalition government, 30 Cabinet Ministers, five Ministers of State (Independent Charge) and 36 Ministers of State were administered the oath of secrecy and office by President Droupadi Murmu.
Read here: Amit Shah, JP Nadda, Shivraj Singh Chouhan, among 71 ministers sworn in. Find full list here
Japan GDP
Japan’s economy contracted less than initially reported in January-March, government data showed. Japan’s GDP shrank a revised 1.8% annualised in the first quarter from the previous three months, as against economists’ median forecast for a 1.9% contraction and a 2.0% decline in the preliminary estimate. The revised figure translates into a quarter-on-quarter contraction of 0.5% in price-adjusted terms, unchanged from the initial reading issued last month, Reuters reported.
Oil Prices
Crude oil prices were flat after a weekly drop amid OPEC’s decision to start restoring supply. Brent oil eased 0.04% to $79.59 a barrel after falling 2.5% last week, while West Texas Intermediate was down 0.05% at $75.49.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
3.6 Crore Indians visited in a single day choosing us as India’s undisputed platform for General Election Results. Explore the latest updates here!
