Indian stock market: 7 key things that changed for market overnight- Gift Nifty, US tech stocks rally to Treasury yields

Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday following gains in global markets, and rebounding from sharp losses seen in previous session.

Asian markets traded higher, while the US stock market ended mixed with the S&P 500 and the Nasdaq Composite rising to more than one-week highs.

On Monday, the Indian stock market crashed amid heavy selling across the board as reports of a new virus outbreak in China spooked investor sentiment.

The Sensex slumped 1,258.12 points, or 1.59%, to close at 77,964.99, while the Nifty 50 settled 388.70 points, or 1.62%, lower at 23,616.05.

“We expect markets to remain volatile until concerns relating to the new virus ease out. We could see stock/ sector specific action on the back of pre-quarterly business updates and the start of the Q3 result season,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Tuesday, following overnight tech rally on Wall Street.

Japan’s Nikkei 225 rallied 1.96%, while the Topix rose 0.73%. South Korea’s Kospi surged 1.21%, and Kosdaq gained 0.34%. Hong Kong’s Hang Seng index indicated a weaker opening.

Gift Nifty Today

Gift Nifty was trading around 23,775 level, a premium of nearly 55 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Monday, amid a rally in semiconductor stocks

The Dow Jones Industrial Average eased 25.57 points, or 0.06%, to 42,706.56, while the S&P 500 gained 32.91 points, or 0.55%, to 5,975.38. The Nasdaq Composite ended 243.30 points, or 1.24%, higher at 19,864.98

Nvidia shares rallied 3.43%, Advanced Micro Devices rose 3.33% and Micron Technology stock price jumped 10.45%. Ford share price rose 0.40% and General Motors adding 3.40%Citigroup moved 2.45%

US Treasury Yields

The benchmark 10-year Treasury yield hit the highest since May on Monday while the 30-year yield posted a 14-month high, The 10-year yields rose 1.7 basis points to 4.612%. They earlier reached 4.644%, the highest since May 2. Thirty-year yields increased 1.7 bps to 4.8316%. They reached 4.861%, the highest since November 2023.

Dollar

The US dollar fell on Monday after conflicting reports about how aggressive President-elect Donald Trump’s tariff plans could be when he takes office. The dollar dropped as much as 1.07% on the session against a basket of major currencies. The dollar then sharply pared declines after Trump denied the report in a post on his Truth Social platform.

US Federal Reserve

Federal Reserve Governor Lisa Cook said policymakers can proceed more cautiously with interest-rate cuts, citing a sturdy labor market and lingering inflation pressures. “Since September, the labor market has been somewhat more resilient, while inflation has been stickier than I assumed at that time. Thus, I think we can afford to proceed more cautiously with further cuts,” she said.

Oil Prices

Crude oil prices saw its first drop in six sessions. Brent crude oil fell 0.33% to $76.05 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.41% to $73.26.

(With inputs from Reuters)

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