5 things that changed for the stock market overnight

Shares in Asia opened stronger following an advance on Wall Street.

On Tuesday, the domestic benchmark indices – Nifty 50 and Sensex – ended their two-day winning streak and finished the final trading session of October in the negative. Investor caution preceded the US Federal Reserve’s interest rate announcement, in addition to the ongoing outflow of foreign funds and the growing tensions in the Middle East.

The Sensex concluded the day down 238 points, or 0.37%, at 63,874.93, while the Nifty 50 finished the day down 61 points, or 0.32%, at 19,079.60.

Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd said that going forward, US Fed policy outcome which is due on Wednesday would provide cues to the market. Investors would also watch out for economic data including Europe core CPI, US Consumer confidence, India, US and UK PMI, and US nonfarm employment that will be released Wednesday.

Auto sector will be in focus as OEMs are expected to report healthy volume growth for month October as management commentary suggest strong sales during the Navratri festival. On stock specific front, Sun Pharma, Tata Steel, Britannia, Heromotcorp, Godrej Consumer and Ambuja Cement will be in focus as these companies will announce their Q2 earnings.

India’s Fiscal Deficit

India’s fiscal deficit stood at ₹7.02 lakh crore in the first half of FY24. The fiscal deficit was 39.3% of the estimate for the whole year. Output of eight core infrastructure sectors, which accounts for two-fifths of India’s industrial output, expanded at a healthy 8.1% in September, official data released on Tuesday showed. However, this was its slowest pace in four months, as seven of the sectors, barring the fertilizer industry, saw slowing output growth.

Also Read: Core sectors grow 8.1%; fiscal deficit at 39% of target

GIFT Nifty

The GIFT Nifty is down more than 25 points from Tuesday’s close on Nifty Futures and tracking mixed global cues. According to Kunal Shah, Senior Technical & Derivative analyst at LKP Securities, currently, the index is trading within a wide range bound by 18,900 and 19,250, and a breakout in either direction is likely to trigger trending moves. The broader trend remains negative, and only a close above 19,300 would signal a resumption of the uptrend.

Asian Markets

According to Bloomberg report, the yen strengthened from near its weakest level this year after Japan’s foreign exchange chief said he was on standby for intervention. Japanese equities jumped over 2% as traders took relief that the Bank of Japan made only slight tweaks to its ultra-loose policy. Benchmark indexes also rose in South Korea and Australia, while futures for Hong Kong slipped.

Wall Street

Tuesday saw gains on Wall Street for the second straight session as they overlooked early weakness ahead of a Federal Reserve announcement. According to media reports, analysts expect the Fed to  hold interest rates steady on Wednesday.

The Dow Jones Industrial Average finished up 0.4 percent at 33,052.87. The broad-based S&P 500 gained 0.7 percent to 4,193.80, while the tech-rich Nasdaq Composite Index advanced 0.5 percent to 12,851.24.

The Dow Jones Industrial Average closed at 33,052.87, up 0.4 percent. Whereas the tech-heavy Nasdaq Composite Index increased by 0.5 percent to 12,851.24, the broad-based S&P 500 gained 0.7 percent to 4,193.80.

(more to come)

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Updated: 01 Nov 2023, 07:54 AM IST