Asian markets traded higher, while the US stock market rallied overnight lifted by gains in technology shares on AI optimism.
On Thursday, the Indian benchmark equity indices slipped into further weakness and ended the volatile session lower, extending their losses for the third consecutive session. In three sessions, both the Nifty 50 and the Sensex have fallen about 3% each.
The domestic benchmark indices Nifty 50 fell into further weakness to end lower, extending their losses into the third consecutive session amid selling pressure due to rising US bond yields, prompted by robust recent economic data in the US, raising concerns about potential delays in interest rate cuts.
The Sensex declined 313.90 points, or 0.44%, to close at 71,186.86, while the Nifty 50 settled 109.70 points, or 0.51%, lower at 21,462.25.
Investors will now focus on the corporate earnings for the third quarter of FY24 which so far have been a mixed bag.
“We expect the market to consolidate in a range with limited upside amid a global uncertain environment. Nifty heavyweights like Reliance Industries, Hindustan Unilever (HUL) and Ultratech Cement will announce their Q3 results today which could drive the index on either side,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
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Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Friday tracking overnight rally on Wall Street fuelled by technology stocks. Investors also assessed Japan’s December core inflation data that came in at its lowest level since June 2022 ahead of the Bank of Japan’s monetary policy meeting.
Japan’s Nikkei 225 rallied 1.4% and the Topix gained 0.98%. South Korea’s Kospi jumped 1.14%, while Kosdaq surged 1.37%. Hong Kong’s Hang Seng index futures indicated a flattish open.
Gift Nifty
Gift Nifty was trading around 21,530 level, as against Nifty futures’ previous close of 21,550, indicating a muted start for the Indian stock market indices.
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Wall Street
US stock market indices ended higher on Thursday led by technology stocks, with the S&P 500 approaching record highs as chipmakers rallied.
The Dow Jones Industrial Average gained 0.54% to 37,468.61, while the S&P 500 surged 0.88% to end at 4,780.94. The Nasdaq ended 1.35% higher at 15,055.65.
US-listed Taiwan Semiconductor Manufacturing (TSMC) shares jumped nearly 10%, lifting the tech-heavy Nasdaq 100 index to close at an all-time high. The chipmakers saw the biggest rally in more than a month.
Nvidia share price gained 1.9% to a record high, while Advanced Micro Devices rose 1.6%. Broadcom, Qualcomm and Marvell Technology shares rallied more than 3% each.
Apple shares jumped 3.3% after Bank of America upgraded the stock to ‘Buy’ and sees more than 20% upside going forward.
US weekly jobless claims fall
The number of Americans filing new claims for unemployment benefits fell last week to the lowest level since late 2022, Reuters reported. Initial claims for state unemployment benefits dropped 16,000 to a seasonally adjusted 187,000 for the week ended January 13, the lowest level since September 2022, according to the Labor Department. Economists polled by Reuters had forecast 207,000 claims for the latest week.
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Dollar up for fifth straight session
The dollar index rose for a fifth straight session on Thursday as investors see lower prospects of an interest rate cut from the US Federal Reserve in March after strong labor market data.
The US dollar index, which measures the currency against a basket of six peers, was up 0.14% at 103.47, after reaching 103.69 on Wednesday, its highest since December 13. It was on track for its fifth straight session of gains, its longest streak since August, Reuters reported.
Fed’s Bostic open to earlier rate cuts
Atlanta Federal Reserve President Raphael Bostic said he was open to reducing US interest rates sooner than he had anticipated if there is “convincing” evidence in coming months that inflation is falling faster than he expected, Reuters reported.
However, Bostic added that the overall situation faced by the Fed “argues for caution.”
Japan’s inflation lowest since June 2022
Japan’s core inflation, which excludes prices of fresh food, slowed for a second straight month in December. The core consumer price index (CPI) in December rose 2.3% from a year earlier, marking the slowest pace of increase since June 2022. It followed a 2.5% rise in November.
(With inputs from Reuters)
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Published: 19 Jan 2024, 07:11 AM IST