Market Cues Today: US Fed Minutes, Nvidia Results, Commodity Price Changes And Other Factors Likely To Impact Investor Sentiment

Stock Market Cues: The stock market is expected to factor several major overnight developments on November 20. These developments include the announcement of chipmaker Nvidia’s results, release of the US Federal Reserve Meeting’s minutes and release of key US economic data.

On November 19, the headline indices closed in the green with the Nifty 50 gaining 142.6 points or 0.55 per cent to close at 26,052.65 and the Sensex adding 513.45 points or 0.61 per cent to close at 85,186.47. Here’s a look at some of the key factors which are expected to impact investor sentiment on November 20:

Nvidia Results

Nvidia stock price finished higher by 2.85 per cent on the Nasdaq after the company reported its Q3 earnings. The chipmaker beat Wall Street expectations as it posted a revenue of $57 and a 65 per cent jump in net income. Strong performance in the global tech sector, particularly in AI, typically leads to investor confidence worldwide regarding the sector. Nvidia’s positive results can turn investor sentiment positive towards Indian IT stocks.

US Federal Reserve Minutes

The US Federal Reserve released the minutes of its recent meeting on November 19. The minutes showed differing views regarding the announcement of future interest rate cuts. The uncertainty surrounding the Fed’s future policy can impact foreign portfolio investor (FPI) flows. Generally a more hawkish (rate-hike inclined) tone causes selling in emerging markets like India and a dovish (rate-cut inclined) tone encourages inflows.

US Trade Deficit Data

The US trade deficit declined 24 per cent month-on-month to $59.6 billion in August compared to $78.2 billion in July. Imports of goods and services fell by 5 per cent to $340.4 billion in August while US exports rose 0.1 per cent to $280.8 billion. A contracting US trade deficit can potentially reduce the pressure for protectionist trade measures such as tariffs, which is positive for US trading partners such as India.

FII Inflows

Foreign institutional investors turned net buyers of Indian equities on November 19 as they added to their holdings in Indian equities to the tune of Rs 1,580.72 crore. Domestic institutional investor (DII) buying continued with DIIs purchasing equities worth Rs 1,360.27 crore.

Crude Oil Prices On November 20

Crude oil prices edged higher in the early hours of November 20, the price of Brent Crude remained around $63.7 up by $0.17 or 0.27 per cent and the price of West Texas Intermediate crude remained around $59.42 up by $0.16 or 0.32 per cent.

Gold Rate On November 20

Physical gold prices edged higher in the morning hours of November 20, the price of 24 karat gold was around Rs 12,487 and the price of 22 karat gold was around Rs 11,446 per gram and the price of 18 karat remained around Rs 9,365 per gram.

Asian Indices

On November 20, key Asian indices traded with gains. Japan’s major index the Nikkei 225 traded higher by 3.52 per cent in the early hours of the day. Other major gainers included South Korea’s KOSPI, China’s Shanghai Composite and Hong Kong’s Hang Seng index which gained 3.17 per cent, 0.53 per cent and 0.38 per cent respectively.

US Market Indices

US market indices ended a multi-day losing spree on November 19 amid investor optimism regarding tech stocks. The Nasdaq Composite, S&P 500 and the Dow Jones Industrial Average finished the session higher by 0.59 per cent, 0.38 per cent and 0.1 per cent respectively.