Indian stock market: 7 key things that changed for market over weekend – Gift Nifty, Modi 3.0 to US nonfarm payrolls

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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.

Read here: Indian stock market: Investors eye inflation data, Modi 3.0 policy decisions, US Fed meet for fresh cues

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)

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Published: 10 Jun 2024, 07:20 AM IST