6 Things That Changed Overnight For The Market: Gift Nifty, Treasury Yields, Arm IPO To Global Market Notes For Sensex Today

The Indian stock market is expected to open on Tuesday on unchanged terms after Asian bourses rose amid mixed global signals.

Asian markets mostly traded higher, while US stocks ended mixed overnight, even as government bond yields rose to 15-year highs.

On Monday, domestic stock indices Sensex and Nifty ended with decent gains, ending a two-day losing streak.

Investors will be keeping an eye on Fed Chair Jerome Powell’s speech at the Jackson Hole symposium later in the week and the release of RBI meeting minutes.

“In the short term, we expect the market to trade in a broader range and buying to take place at lower levels. Stock-specific actions are likely to dominate,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Here are the top global clues for today’s Indian stock market:

Asian markets

Asian markets mostly traded higher on Tuesday after Wall Street benefited from technology stocks overnight.

Japan’s Nikkei 225 gained 0.86% and the Topix rose 0.72%. South Korea’s Kospi rose 0.88% and the Kosdaq gained 0.84%.

Hong Kong’s Hang Seng index futures traded higher at 17,680 compared to the HSI’s close of 17,623.29.

In Australia, the S&P/ASX 200 lost 0.19%.

Gift Nifty traded at 19,390 compared to the previous Nifty futures close of 19,399, suggesting a flat to negative start for the Indian benchmark indices.

Also Read: Buy or Sell: Vaishali Parekh recommends buying three stocks today – August 22

Wall Street

US markets ended the mixed performance. Nasdaq gained more than 1% despite rising government bond yields, led by the rally in technology stocks.

The S&P 500 was up 30.06 points, or 0.69%, to 4,399.77 and the Nasdaq Composite was up 206.81 points, or 1.56%, to 13,497.59. The Dow Jones Industrial Average fell 36.97 points, or 0.11%, to 34,463.69.

Among stocks, Nvidia shares rose 8.5% as HSBC raised its price target on the stock to $780. Microsoft shares gained 1.7%, while Tesla shares gained 7.3%.

Software maker Palo Alto Networks rose 14.8% after reporting higher earnings, while shares in Johnson & Johnson fell 3%.

S&P downgrades US banks

S&P Global Ratings has downgraded and softened the outlook for several US banks as various strains make life “difficult” for lenders.

Bloomberg reported that S&P revised the notes for KeyCorp, Comerica Inc., Valley National Bancorp, UMB Financial Corp. and Associated Banc-Corp down a notch, citing the impact of higher interest rates and deposit movements across the industry.

The rating agency also downgraded its outlook on River City Bank and S&T Bank to negative and said its assessment of Zions Bancorp remained negative following the review, the report said.

The move comes two weeks after Moody’s Investors Service downgraded ratings for 10 US banks and warned other banks could face downgrades. This is part of a broader look at the increasing pressures on the industry.

US government bond yields

The sell-off in the US bond market continued on Monday, pushing 10-year yields to a 15-year high on hopes rates would stay higher for longer.

According to Bloomberg, the yield on 10-year inflation-linked government bonds rose above 2% for the first time since 2009. Without this protection, the 10-year government bond yield rose nearly 10 basis points to as high as 4.35%, a level last seen in late 2007. Yields on two-year government bonds also briefly rose to over 5%.

SoftBank arm files for initial public offering

Arm Holdings Ltd, the semiconductor division of SoftBank Group Corp., has filed for an initial public offering (IPO) in the US with a goal of raising $8 billion to $10 billion. This is likely to be the largest IPO in the US this year.

Arm didn’t disclose the proposed terms of the share sale in the document, but the company is expected to target a valuation of $60 billion to $70 billion, Bloomberg reported.

Read here: SoftBank’s Arm Files IPO That Will Be 2023’s Biggest

Goldman Sachs is considering selling part of its wealth business

Goldman Sachs is considering selling part of its wealth business as it shifts its focus back to serving the super-rich and away from high-net-worth clients in mass markets. Goldman is also pursuing the sale of its fintech business GreenSky and has also divested the majority of its unsecured consumer lending after halting this type of lending last year, Reuters reported.

The Wall Street bank is evaluating alternatives for its registered investment advisory entity (RIA) called Personal Financial Management (PFM), which has about $29 billion under management, Goldman Sachs said in a statement.

The change in strategy comes after CEO David Solomon restructured the company into three entities last year and scaled back ambitions for its consumer business, which has lost $3 billion over the past three years, the report said.

(With contributions from agencies)

subjects