6 days ago
Indian stocks face mixed overnight cues from Nvidia, oil, inflation
Indian shares had a weak day before important US inflation information.
The Sensex and Nifty 50 both fell on Wednesday.
Some Asian markets and US stock futures later rose after NVIDIA announced strong sales.
However, Gift Nifty pointed to mixed signals for the Indian market’s opening.
Oil prices dropped because Iran-related talks raised hopes that the Strait of Hormuz could reopen.
The waterway is important because a lot of oil normally travels through it.
Gold prices edged up as investors considered whether US interest rates might stay high.
Investors were also watching the Federal Reserve’s Jackson Hole meeting for clues about future policy.
Sensex and Nifty 50 fell on Wednesday as investors booked profits ahead of US inflation data.
Asian markets and US stock futures rose after NVIDIA reported stronger-than-expected revenue and guidance.
Gift Nifty traded near 24,333.50, about 95 points below the previous Nifty futures close, signaling mixed opening cues.
Brent crude fell 0.7% to $87.24 per barrel as hopes grew for a reopening of the Strait of Hormuz.
Gold steadied near $4,600 per ounce while investors assessed persistent US inflation and the Federal Reserve’s interest-rate outlook.
- Who
- Indian equity investors, global markets, NVIDIA, Iran, Oman, Qatar, and the Federal Reserve.
- What
- Global market signals were mixed ahead of the Indian stock market open, following weak domestic benchmarks, strong NVIDIA earnings, falling oil prices, and persistent US inflation concerns.
- Where
- The developments involved Indian markets, Asian markets, Wall Street, the Strait of Hormuz, and the Federal Reserve’s Jackson Hole symposium in Wyoming.
- When
- The overnight cues were reported for Thursday, 27 August, after Indian markets closed on Wednesday.
- Why
- Investors were assessing NVIDIA’s outlook, US inflation and interest-rate expectations, possible changes to Strait of Hormuz access, and upcoming Federal Reserve guidance.
Factors supporting markets
Factors pressuring markets
Technology and global risk appetite
Factors supporting markets
Strong NVIDIA sales and guidance lifted Asian markets and US stock futures, reinforcing optimism around the artificial-intelligence investment cycle.
Factors pressuring markets
The Indian benchmarks had already declined as investors took profits, while technology and consumer stocks faced capital rotation toward financials and broader-market shares.
Oil and inflation outlook
Factors supporting markets
Expected progress toward reopening the Strait of Hormuz could ease supply disruptions and lower crude prices, potentially supporting markets.
Factors pressuring markets
Persistent US inflation lifted the dollar and bond yields and increased expectations that the Federal Reserve could keep rates higher or raise them further, creating pressure on equities and gold.
Key facts
- Previous close
- Sensex fell 183 points, or 0.24%, to 77,472.94; Nifty 50 declined 127 points, or 0.52%, to 24,207.75.
- Gift Nifty
- Traded around 24,333.50, nearly 95 points below the previous Nifty futures close.
- NVIDIA revenue
- Revenue more than doubled year-on-year to $96.22 billion, above the $92.17 billion estimate.
- NVIDIA EPS
- Reported earnings per share of $2.22, compared with an expected $2.10.
- Crude oil
- Brent fell 0.7% to $87.24 per barrel, while West Texas Intermediate declined 0.7% to $81.67.
- Gold
- Spot gold rose 0.5% to $4,615.27 per ounce; US gold futures gained 0.4% to $4,669.50.
- Upcoming event
- The Federal Reserve’s annual Jackson Hole symposium begins on Thursday in Wyoming.
Quotes
Hariselvan Radhakrishnan
Founder and CEO of HST Wealth
“The Indian equity markets delivered a divergent performance on Wednesday, with the Nifty surrendering early gains to end lower, while Bank Nifty outperformed sharply on strong buying in both private and public sector banks.”
livemint.com
Sources
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