Asian markets traded mostly lower and U.S. stocks gained overnight while Treasuries rose on expectations that U.S. inflation will remain high.
The domestic benchmark indices ended Wednesday’s volatile session marginally higher amid mixed global signals.
The Sensex closed 92.47 points, or 0.14%, higher at 66,023.24, while the Nifty 50 settled 28.45 points, or 0.14%, higher at 19,811.85.
“Overall, the market is likely to remain lackluster and consolidate in a range barring any major events and start of holiday season,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Read also: Buy or sell: Vaishali Parekh recommends three stocks to buy today – November 23
Here are key world market indications for Sensex today:
Asian Markets
Asian markets traded in a narrow range on Thursday after US stocks gained while Treasuries fell on data showing US consumers expect inflation to continue.
Japan’s markets are closed for a public holiday. South Korea’s Kospi rose 0.18%, while the Kosdaq rose 0.16%.
Hong Kong’s Hang Seng index futures were lower at 17,692 compared to the HSI’s close of 17,734.6.
Australia’s S&P/ASX 200 fell 0.58%.
Meanwhile, Gift Nifty traded around 19,891 levels against the previous close of 19,887 Nifty futures, indicating a flat start for the Indian benchmark indices.
Read also: Stocks to Watch: Honasa Consumer, Welspun Corp, InterGlobe Aviation, TVS Motor
Wall Street
US stock indexes ended higher on Wednesday amid optimism that the US Federal Reserve may not raise interest rates and that the economy is still resilient.
The Dow Jones Industrial Average gained 184.74 points, or 0.53%, to 35,273.03, while the S&P 500 rose 18.43 points, or 0.41%, to 4,556.62. The Nasdaq Composite finished 65.88 points, or 0.46%, higher at 14,265.86.
The yield on benchmark 10-year notes rose 1.3 basis points (bps) to 4.431%. The two-year yield, which reflects interest rate expectations, rose 5.1 bps to 4.934%.
Among stocks, Nvidia’s share price fell 2.5% after the chip designer warned that US export restrictions could lead to a sharp drop in sales in China as it forecast overall fourth-quarter earnings above Wall Street’s targets.
(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay up to date with the latest financial information! Click here!)
Shares of Deere & Co fell 3.1% after the farm equipment maker forecast 2024 profit below analysts’ estimates.
The US stock market and bond markets will remain closed on Thursday for Thanksgiving.
US jobless ads
The number of Americans filing new claims for unemployment benefits fell more than expected last week. Initial claims for state unemployment benefits fell 24,000 to a seasonally adjusted 209,000 for the week ended November 18. Economists polled by Reuters had forecast 226,000 claims for the last week.
Although the Labor Department’s weekly jobless claims report also showed jobless rolls falling for the first time since mid-September, they remained near the highs for this year.
Nvidia’s stock is down
Nvidia’s share price fell 2.46% to $487.16 on Wednesday after the company’s downbeat China sales outlook. The company reported earnings well above Wall Street’s expectations a day ago, but said it expects a sharp drop in fourth-quarter sales in China – a key revenue driver – after new US rules.
Nvidia forecast adjusted gross margins of 75.5% for the fourth quarter, above analyst estimates of 72.64%. Nvidia forecasts current-quarter revenue of $20 billion, plus or minus 2%.
Read also: Dividend stocks: Amrutanjan Health Care, Premco Global, Procter & Gamble Health stocks to trade ex-dividend today
Nvidia is poised to take a hit from the vastly expanded US export controls on what the company can sell to China. Sales of the affected chips accounted for nearly a quarter of Nvidia’s data center sales in recent quarters, Reuters reported.
“Export controls will have a negative impact on our China business, and we don’t have good visibility into the magnitude of that impact even in the long term,” said chief financial officer Colette Kress.
Oil prices are plunging
Crude oil prices plunged 4% on Wednesday after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) unexpectedly postponed a policy meeting scheduled for Sunday, raising questions about the future course of crude production cuts.
Brent crude traded 0.59% lower at $81.96 a barrel, while US West Texas Intermediate crude fell 0.56% to $76.67 a barrel.
Read here: Oil prices fall 4% after OPEC+ postpones production policy meeting to November 30; Brent falls to $79/bbl
US inflation expectations are rising
U.S. consumers’ inflation expectations rose for a second straight month in November, according to a survey released Wednesday, which may create some concern for Federal Reserve policymakers.
American households see inflation accelerating to 4.5% over the next year, up from 4.2% in October and from 3.2% in September, the University of Michigan’s twice-monthly survey of consumer sentiment showed. That’s the highest rate since April, Reuters reported.
(With inputs from Reuters)
Disclaimer: The opinions and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Milestone Warning!Livemint tops charts as the fastest growing news site in the world 🌏 Click here to know more
Catch all Business News, Market News, News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More or less
Updated: 23 Nov 2023, 07:17 IST