Indian stock market: 8 key things that changed for market overnight – Gift Nifty, inflation to Bitcoin price rally

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Asian markets traded higher, while the US stock indices ended mixed overnight as investors awaited key US inflation data that will influence the Federal Reserve monetary policy.

On Monday, the Indian stock market indices ended with steep losses amid heavy selling in banking and financial heavyweights, ahead of key macro numbers and mixed global cues.

The Sensex plunged 523.00 points, or 0.73%, to close at 71,072.49, while the Nifty 50 settled 166.45 points, or 0.76%, lower at 21,616.05.

“The premium valuation gap between mid to large caps has notched to its all-time high. Despite a robust economic forecast, corporate earnings are expected to slow due to moderated operating margins. It is going to be a challenge for the broad market to sustain the premium valuation. Large caps are predicted to excel amid consolidation,” said Vinod Nair, Head of Research, Geojit Financial Services.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — February 13

Here are key domestic and global market cues for Sensex today:

Asian Markets

Asian markets traded mostly higher on Tuesday as more markets returned to trade from the Lunar New Year holiday.

Japan’s Nikkei 225 rallied 1.82%, crossing the 37,000 mark to a 34-year high, while the Topix jumped 1.02%. South Korea’s Kospi gained 1.16% and the Kosdaq rose 1.28%.

Markets in China are closed for the week, due to the Lunar New Year holiday. Hong Kong market is also closed.

Gift Nifty Today

Gift Nifty was trading around 21,735 level, as compared with Nifty futures’ previous close of 21,696, indicating a mildly positive start for the Indian stock market indices.

Also Read: Buy or sell: Ruchit Jain of 5paisa recommends buying these two stocks this week

Wall Street

The US stock market indices ended mixed on Monday as markets awaited key inflation data that will influence US Fed monetary policy.

The Dow Jones Industrial Average gained 135.76 points, or 0.35%, to 38,807.45, while the S&P 500 eased 4.12 points, or 0.08%, to end at 5,022.49 points. The Nasdaq Composite closed 42.74 points, or 0.27%, lower at 15,947.92. 

During the session, Nvidia’s market capitalization crossed above Amazon as the euphoria around AI catapulted the chipmaker to the fourth-most valuable US company, but ended the day behind the online retailer, Reuters reported. 

Nvidia shares ended the day 0.16% higher, while Amazon declined 1.2%.

India Inflation

India’s retail inflation rate decelerated to a three-month low of 5.10% in January 2024 from 5.7% in December 2023, the data released from the Ministry of Statistics and Programme Implementation (MoSPI) said.

Read here: India’s retail inflation eases to 5.10% in January 2024

IIP Growth

India’s industrial output growth edged up to 3.8% in December 2023 from 2.4% in November 2023. For April-December 2023, the Index of Industrial Production (IIP) stood at 6.1% as against 5.5% in April-December 2022, as per the data released by the Ministry of Statistics and Programme Implementation on February 12.

Arm’s share rally boosts SoftBank stock

Arm Holdings shares surged 29% on Monday, adding to a staggering rally fueled by optimism around artificial intelligence. Arm stock price has gained more than 90% since it reported financial results on February 7 with its quarterly outlook beating Wall Street’s expectations.

SoftBank Group shares surged for a third day boosted by the rally in Arm Holdings. SoftBank held onto a stake of about 90% in Arm as it took the company public last year. SoftBank’s stock gained as much as 11% on Tuesday, to the highest level since May of 2021. 

Read here: SoftBank shares climb to highest level since May 2021, thanks to Arm Holdings’ explosive AI rally

Japan’s Corporate Inflation

Japan’s corporate goods price index rose 0.2% in January from a year ago, beating the 0.1% expected by economists polled by Reuters. On a month-on-month basis, corporate inflation in Japan slowed from the 0.3% seen in December.

Bitcoin price hits $50,000

Bitcoin price hit $50,000 for the first time in more than two years, with the cryptocurrency tripling in value since the start of last year. Bitcoin last traded at $50,000 in December 2021.

The price of the world’s largest cryptocurrency was last higher by 0.3% at $49,975, while Ether was up 1.5% at $2,670.80.

(With inputs from Agencies)

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Published: 13 Feb 2024, 07:01 AM IST