6 things that changed for the stock market over weekend – Gift Nifty to rally in Asian shares

Asian markets traded higher and US stocks gained, and sentiment may be pushing for a rise in crude oil prices.

Investors expect many triggers in the stock market this week including domestic and global macroeconomic data, foreign capital inflows, and global market cues including US bond yields, crude oil prices, and performance in US markets.

On Friday, the benchmark domestic equity indices ended lower. The Sensex ended 187.75 points, or 0.28%, lower at 65,794.73 while the Nifty 50 declined 33.40 points, or 0.17%, to settle at 19,731.80.

For the week, however, the markets extended their bullish tone for the third week in a row and gained more than one percent.

Also read: The Week Ahead: Macro Data, IPO action, FII activity, global cues among key market drivers this week

“Softer-than-expected inflation figures in the US, UK, and at home buoyed investor optimism, fueling hopes for an end to the interest rate cycle. The market is expected to maintain its positive momentum in the short term, supported by falling oil prices and softening US yields,” said Vinod Nair, Head of Research at Geojit Financial Services.

Here are key global market tips for Sensex today:

Asian Markets

Asian markets traded higher on Monday with Japanese shares hitting three-decade highs amid strong earnings and offshore demand. Investors were awaiting a decision on China’s benchmark lending rates.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1%, after climbing 2.8% last week to a two-month high.

Japan’s Nikkei 225 rose 0.12% and the Topix gained 0.15%. South Korea’s Kospi added 0.13%, while the Kosdaq was up 0.35%.

Hong Kong’s Hang Seng index futures were higher at 17,728, compared with the HSI’s close of 17,454.19.

Australia’s S&P/ASX 200 rose 0.18%.

Gift Nifty was trading around 19,805 level as against 19,803 close to previous Nifty futures, indicating a flat start for India’s benchmark indices.

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Wall Street

US stock market indexes finished slightly higher on Friday due to gains in energy stocks and the 10-year Treasury yield hit a near two-month low. Comments from US Federal Reserve officials clouded the prospect of when the US central bank might start cutting interest rates.

The Dow Jones Industrial Average rose 1.81 points, or 0.01%, to 34,947.28, while the S&P 500 gained 5.78 points, or 0.13%, to 4,514.02. The Nasdaq Composite finished 11.81 points, or 0.08%, higher at 14,125.48.

For the week, the S&P 500 added 2.2% while the Nasdaq composite rose 2.4% and the Dow climbed 1.9%, Reuters reported.

Among stocks, shares of Applied Materials fell 4%, while shares of heavyweight Alphabet eased over 1% and shares of Microsoft fell 1.7%.

Amazon shares gained 1.6%, Ross Stores rose 7.2%, and Gap shares rose 30.6%. ChargePoint Holdings shares fell 35.5%.

Also read: Wall Street week ahead: Investors focus on Fed minutes, flash PMI reports

US dollar near two-month low

The US dollar weakened to almost over a two-month low against its major counterparts on Monday amid rising sentiment that US interest rates have peaked, and attention now to how soon the Federal Reserve can begin to ease monetary conditions.

The dollar index, which measures the greenback against a basket of six currencies, rose 0.04% to 103.95, but struggled to break away from last week’s two-month trough of 103.79. The index fell by almost 2% last week.

Against the dollar, the euro stood near a more than two-month high at $1.0900, Sterling fell 0.06% to $1.24545. The offshore yuan firmed near a three-month high against the dollar at 7.2214 per dollar. The Australian dollar fell 0.17% to $0.6504, while the New Zealand dollar fell 0.04% to $0.5990.

Oil steady after 4% jump.

Crude oil prices rose after jumping more than 4% on Friday, breaking from a four-month low, as US sanctions on some Russian oil shippers lent support.

On Friday, Brent crude futures settled up $3.19, or about 4.1%, at $80.61 a barrel, while West Texas Intermediate (WTI) crude rose $2.99, or 4.1%, at $75.89.

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Gold subdued after hitting a two-week high

Gold prices traded lower on Monday after hitting a two-week high in the last session, weighed down by a slight increase in US Treasury yields.

Spot gold fell 0.2% to $1,975.80 an ounce, after rising 2.2% last week. US gold futures eased 0.3% to $1,978.50.

US housing begins a moderate rise

The number of single-family homes in the United States rose slightly in October and homebuilder confidence fell to an 11-month low in November.

Single-family housing starts, which make up the bulk of homebuilding, rose 0.2% to a seasonally adjusted annual rate of 970,000 units last month, the Commerce Department’s Census Bureau said.

A survey showed that confidence among house builders slumped this month. The National Association of Home Builders noted that builders expected lower sales in the next six months, with mortgage rates stuck above 7% since mid-August, Reuters reported.

(With input from Reuters)

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Updated: 20 November 2023, 07:21 AM IST