Asian markets traded mostly lower while US stocks ended in the red overnight as Treasury yields spiked amid dampened hopes of interest rate cut by the US Federal Reserve in March.
On Tuesday, the Indian stock market indices ended lower, snapping their five-day winning streak amid negative global cues.
The Sensex declined 199.17 points, or 0.27%, to close at 73,128.77, while the Nifty 50 settled 65.15 points, or 0.29%, lower at 22,032.30.
“Following global cues, domestic equities took a breath after rallying in the last few sessions. Overall we expect the market to consolidate in higher zones,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded lower following overnight losses on Wall Street and ahead of key economic data in China.
Japan’s Nikkei 225 rallied 1.24% and the Topix gained 0.92%. South Korea’s Kospi fell 0.46%, while the Kosdaq dropped 1.1%. Hong Kong’s Hang Seng index futures indicated to a weaker open.
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Gift Nifty
Gift Nifty was trading around 21,850 level as against Nifty futures’ previous close of 22,025, indicating a negative start for the Indian stock market indices.
US Stock Market
US stock market indices ended lower on Tuesday dragged by selling in banking stocks.
Morgan Stanley shares tumbled 4.2% to a more than one-month low, while Goldman Sachs share price closed 0.7% higher. Spirit Airlines shares slumped 47%. Apple share price dropped 1.2%.
The Dow Jones Industrial Average declined 0.62% to 37,361.12 points, while the S&P 500 fell 0.37% to end at 4,765.98 points. The Nasdaq ended 0.19% lower at 14,944.35 points.
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Dollar at one-month high
The US dollar index hovered at a one-month high against a basket of currencies as expectations for interest rate cut in March were dampened following the remarks of US Federal Reserve Governor Christopher Waller.
The dollar index, a measure of the greenback against a basket of major currencies, last stood at 103.35 after rising as high as 103.42 during the previous session, its highest level since December. 13.
US ‘within striking distance’ of inflation goal: Fed’s Waller
The US is “within striking distance” of the Federal Reserve’s 2% inflation goal, but the central bank should not rush to cut its benchmark interest rate until it is clear lower inflation will be sustained, US Federal Reserve Governor Christopher Waller said.
And regardless of when rate cuts begin, Waller said the central bank should proceed “methodically and carefully,” not make the sort of large, fast reductions used when the Fed is trying to bail out the economy from a shock or a pending downturn, Reuters reported.
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US yields rise
US Treasury yields rose on Tuesday after central bankers in Europe and the United States pushed back against market expectations of imminent interest rate cuts, Reuters reported.
Benchmark 10-year yields rose to 4.064%, their highest in over a week, up from a 3.95% close last week. The 30-year yields were up at 4.305%, their highest in over a month. Two-year yields, which generally tend to more closely reflect monetary policy expectations, were at about 4.228%, up from 4.138% on Friday.
Fitch affirms India’s ratings
Global ratings agency Fitch affirmed India’s long-term foreign currency issuer default ratings at ‘BBB-’ with a stable outlook. However, the rating agency also flagged that India’s weak public finances were the ‘largest constraint’ to the rating.
(With inputs from Agencies)
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Published: 17 Jan 2024, 07:18 AM IST