Asian markets traded in the green, while the US stock indices ended sharply higher overnight after the sticky inflation data failed to dampen investors’ hopes of interest rate cuts by the US Federal Reserve in the coming months.
Traders now see a 70% chance of the first rate cut coming in June, the CME FedWatch Tool showed, versus 71% ahead of the inflation data, Reuters reported.
On Tuesday, the Indian stock market indices ended a choppy session flat with a positive bias.
The Sensex gained 165.32 points, or 0.22%, to close at 73,667.96, while the Nifty 50 inched 3.05 points, or 0.01%, higher to settle at 22,335.70.
“Pain is likely to continue in the broader market amid stretched valuation and red flags from SEBI. Also, the mandatory disclosure format for mutual funds shared by SEBI to look at the stress situation in the funds, will be out by March 15. This is also adding to the ongoing concerns. Thus, volatility in midcap and smallcap could keep the benchmark indices in check,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — March 13
Here are key global market cues for Sensex today:
Asian Markets
Asian markets gained following an overnight rally on Wall Street.
Japan’s Nikkei 225 rose 0.73%, while the Topix gained 0.79%. South Korea’s Kospi added 0.48% and the Kosdaq inched 0.1% higher. Hong Kong’s Hang Seng index futures indicated a weak opening.
Gift Nifty Today
Gift Nifty was trading around the 22,459 level, a premium of over 10 points from the Nifty futures’ previous close, indicating a flat-to-positive start for the Indian stock market indices.
Wall Street
US stock market indices ended higher on Tuesday, with the S&P 500 registering a record high close, after the release of consumer inflation data.
The Dow Jones Industrial Average rallied 235.74 points, or 0.61%, to 39,005.4, while the S&P 500 jumped 57.3 points, or 1.12%, to 5,175.24. The Nasdaq Composite closed 246.36 points, or 1.54%, higher at 16,265.64.
Among stocks, Oracle share price surged 11.7% to a record high, while Nvidia shares rallied 7.2%. Boeing share price declined 4.3% and Southwest Airlines shares plunged 14.9%.
US Inflation
US inflation increased higher than expected in February amid higher costs for gasoline and shelter. The consumer price index (CPI) rose 0.4% last month after climbing 0.3% in January. In the 12 months through February, the US inflation increased 3.2%, after advancing 3.1% in January. Economists polled by Reuters had forecast the CPI gaining 0.4% on the month and increasing 3.1% year-on-year.
Read here: US inflation rises again in Feb
India Inflation
India’s consumer price index (CPI) – based inflation eased to a four-month low of 5.9% in February 2024, according to government data. The headline inflation in January was at 5.1%.
Read here: February inflation remains steady at 5.1% but food inflation up
India IIP
India’s factory output, based on the Index of Industrial Production (IIP), slowed down to 3.8% in January 2024, according to government data.
Read here: Factory output: India’s industrial production at 3.8% in January
Oil Prices
Crude oil prices rose on Wednesday on expectations of strong global demand, including in the United States. Brent futures for May delivery gained 0.44% to $82.28 a barrel, while the April US West Texas Intermediate (WTI) crude contract rose 0.49% to $77.94.
US dollar, Treasury yields gain
The US dollar held steady against a handful of rival currencies on Wednesday, and the Treasury yields also advanced after data showed hotter-than-expected inflation last month. The dollar index, which measures the greenback against a basket of peer currencies, was little changed at 102.91.
The yield on benchmark US 10-year notes rose 4.9 basis points to 4.153% after reaching a session high of 4.172% on Tuesday following a soft auction of $39 billion by the Treasury, Reuters reported. The 2-year note yield rose 5.9 basis points to 4.5925%.
(With inputs from Reuters)
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Published: 13 Mar 2024, 06:58 AM IST