Indian stock market: 8 things that changed overnight ahead of RBI policy- Gift Nifty, Tesla shares, US-China trade talks

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a tepid note Friday, tracking mixed sentiment in global markets, and ahead of the Reserve Bank of India’s monetary policy.

Asian markets traded higher, while the US stock market ended lower overnight, with all three indices closing in the red.

The RBI Governor Sanjay Malhotra will announce the monetary policy decision later today. Economists expect RBI’s Monetary Policy Committee (MPC) to cut repo rate by 25 basis points (bps) to 5.75% from 6%, its third straight repo rate cut.

On Thursday, the Indian stock market ended higher led by broad-based buying, with the benchmark indices gaining over half a percent each.

The Sensex rallied 443.79 points, or 0.55%, to close at 81,442.04, while the Nifty 50 settled 130.70 points, or 0.53%, higher at 24,750.90.

“With all eyes now on the outcome of the upcoming RBI MPC meeting, the continued outperformance of rate-sensitive sectors such as banking, realty, and auto appears to be factoring in a 25 bps rate cut. However, the RBI’s commentary will be crucial, given the mixed global cues amid a favorable domestic environment. We continue to recommend a focus on theme-specific opportunities while maintaining prudent position sizing due to the mixed market signals,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher after a phone call between US President Donald Trump and Chinese President Xi Jinping improved sentiment.

Japan’s Nikkei 225 gained 0.14%, while the Topix rose 0.24%. South Korea’s Kospi jumped 1.49%, and the Kosdaq rose 0.8%. Hong Kong’s Hang Seng Index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 24,845 level, a discount of nearly 16 points from the Nifty futures’ previous close, indicating a tepid start for the Indian stock market indices.

Wall Street

US stock market ended lower on Thursday in choppy trade amid a slump in Tesla shares.

The Dow Jones Industrial Average declined 108.00 points, or 0.25%, to 42,319.74, while the S&P 500 fell 31.51 points, or 0.53%, to 5,939.30. The Nasdaq Composite closed 162.04 points, or 0.83%, lower at 19,298.45.

Tesla share price plunged 14.26%, Nvidia stock price fell 1.36%, Apple shares dropped 1.08%, while Advanced Micro Devices share price declined 2.44%. Brown-Forman stock price fell almost 18% and Procter & Gamble shares fell 1.9%.

Tesla Share Price

Tesla share price slumped 14.26% to close at $284.70 after the public feud between CEO Elon Musk and President Donald Trump intensified over the new US tax bill. Tesla stock price has fallen in four out of the last five sessions, and the electric vehicle maker has lost about $150 billion in value after Trump and Musk began their verbal war.

US-China Trade Talks

US President Donald Trump and Chinese President Xi Jinping spoke Thursday, according to China’s Foreign Ministry amid trade tensions between the two countries. Trump said on social media that the talks focused primarily on trade led to “a very positive conclusion,” announcing further lower-level US-China discussions.

ECB Rate Cut

The European Central Bank cut interest rates as expected but hinted at a pause in its year-long easing cycle. The ECB cut its key deposit rate by 25 basis points (bps) to 2%, its seventh consecutive reduction and eighth since June last year when it began lowering borrowing costs.

US Unemployment Claims

The number of Americans filing new applications for unemployment benefits increased to a seven-month high last week. Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 247,000 for the week ended May 31, the highest level since last October. Economists polled by Reuters had forecast 235,000 claims for the latest week.

Gold Prices

Gold prices rose on Friday and headed for weekly gains. Spot gold price gained 0.3% to $3,361.36 an ounce. Bullion is up 2.3% for the week so far. US gold futures rose 0.3% to $3,384.40. Spot silver prices fell 1.2% to $35.71 per ounce, still hovering near 12-year high.

(With inputs from Reuters)

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