Indian stock market: 7 key things that changed for market overnight – Gift Nifty, oil prices to India’s fiscal deficit

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday, the first trading session of New Year 2025, following weak cues from global markets.

Asian markets were shut for a New Year holiday, while the US stock market ended lower overnight in a low-volume session.

On Tuesday, the Indian stock market indices ended the last session of the year 2024 with minor losses amid a lackluster trade.

The Sensex fell 109.12 points, or 0.14%, to close at 78,139.01, while the Nifty 50 settled flat at 23,644.80.

“With the rupee showing no signs of moderating and hitting fresh lows against the dollar, equity markets too remained under the grip of nervousness although markets erased most of its losses towards the close. Markets could remain volatile over next few weeks as investors await Trump taking charge as US president,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets, including stock markets of China, Japan, Taiwan, Hong Kong and South Korea are closed on Wednesday for the New Year 2025 holiday.

Gift Nifty Today

Gift Nifty was trading around 23,733 level, a discount of nearly 72 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market ended the last trading session of 2024 lower amid low volumes.

The Dow Jones Industrial Average on Tuesday declined 29.51 points, or 0.07%, to 42,544.22, while the S&P 500 fell 25.31 points, or 0.43%, to 5,881.63. The Nasdaq Composite closed 175.99 points, or 0.90%, lower at 19,310.79.

Nvidia shares fell 2.3%, Apple stock price declined 0.7%, and Advanced Micro Devices dropped 1.3%. Exxon Mobil shares gained 1.7% and Chevron stock rose 1.2%.

For 2024, the Nasdaq surged 28.6%, while the bellwether S&P 500 rallied 23.3% gain and the blue-chip Dow Jones gained 12.9%.

US Treasury Yields

US Treasury yields rose on Tuesday in thin trade. The 10-year yield gained 3.4 basis points (bps) to 4.579%. For the year, the yield has advanced more than 60 bps, its best yearly gain in two years, Reuters reported. The two-year yield was flat at 4.252%.

Fiscal Deficit

India’s fiscal deficit for the April-November period was ₹8.47 lakh crore, 52.5% of the estimate for 2024-25. The latest figure is lower than ₹9.07 lakh crore a year ago due to the Reserve Bank of India (RBI) dividend and subdued government capex during the first quarter. The Union government’s fiscal deficit target is 4.9% of the gross domestic product (GDP) for 2024-25 (FY25).

Core Sector Growth

India’s Index of Eight Core Industries (ICI) rose by 4.3% (provisional) in November 2024 compared to the same month in 2023. The production of Cement, Coal, Steel, Electricity, Refinery Products and Fertilizers recorded positive growth in November 2024. The Eight Core Industries Growth in October was 3.1%.

Oil Prices

Crude oil prices ended higher on Tuesday, but registered a fall of around 3% in 2024, slipping for a second straight year.

Brent crude futures gained 0.88% to $74.64 a barrel, while the US West Texas Intermediate (WTI) crude rallied 1.03% to $71.72 a barrel.

(With inputs from Reuters)

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