8 Key Overnight Market Changes: Gift Nifty, US Inflation & TCS Q2 Results

The Indian stock market is set to commence trading on a subdued note today, as the broader global market trends portray a mixed outlook. Key domestic indices, the Sensex and Nifty 50, are expected to reflect this sentiment as investors navigate through various data points influencing market movements.

Asian markets showed a generally positive trend, led by South Korea, where the central bank made its first interest rate cut since March 2022, a move that has buoyed investor sentiment in the region. Japanese indices such as Nikkei 225 and Topix gained 0.3% and 0.16% respectively, while South Korea’s Kospi and Kosdaq climbed 0.8% and 0.4%. In contrast, US markets closed in the red following higher-than-expected inflation figures.

The US stock market faced downward pressure, with the Dow Jones Industrial Average decreasing by 57.88 points, or 0.14%, while the S&P 500 and Nasdaq Composite saw declines of 0.21% and 0.05% respectively. The catalyst for this sell-off was a rise in consumer prices—up 0.2% in September, indicating persistent inflationary pressures that exceeded economists’ projections.

On Thursday, Indian markets experienced modest gains, with the Sensex climbing 144.31 points or 0.18%, closing at 81,611.41, while the Nifty 50 increased by 16.50 points or 0.07% to settle at 24,998.45. However, there remains an undercurrent of caution as investors await corporate earnings and adjust their expectations for Q2FY25 results, which may be influenced by global and rural demand dynamics.

Vinod Nair, Head of Research at Geojit Financial Services, highlights the mixed momentum within the broader domestic market, saying initial expectations for Q2FY25 earnings are tempered given the challenges in both global and rural segments.

Gift Nifty was seen trading at approximately 25,085, indicating a cautious opening for the Indian indices, reflecting a discount of nearly 35 points from the previous close for Nifty futures.

The latest data from the US shows that inflation pressures are still evident, with the consumer price index (CPI) increasing by 2.4% year-on-year, a slight uptick from August. This inflationary data poses implications for future interest rate decisions by the US Federal Reserve, with officials indicating a potential pause in rate cuts amid fluctuating economic conditions.

In another concerning sign, initial claims for unemployment benefits in the US surged to 258,000, which is higher than economists had anticipated, further complicating the employment landscape in light of upcoming economic forecasts.

In the backdrop of macroeconomic challenges, much attention is being placed on corporate earnings reports. Tata Consultancy Services (TCS) recently reported a marginal drop in net profit for Q2, falling by 1.1% to ₹11,909 crore. Despite this decline, TCS’s revenue exhibited growth, rising 2.6% to ₹64,259 crore, indicating resilience amid a tough economic environment.

As the Indian stock market gears up for trading today, investors are advised to remain vigilant and consider the various global cues and economic indicators that could influence market movements. With earnings season in full swing, careful analysis and informed decisions will be paramount to navigating the current landscape.