Indian stock market: The domestic equity market is expected to open higher amid cautiousness on Wednesday racking mixed global market cues.
Asian markets traded mostly lower while the US stocks ended mixed overnight ahead of the key inflation data.
Market participants will now focus on US inflation and Chinese inflation data and US Federal Open Market Committee (FOMC) meeting minutes to be released later today.
On Tuesday, the Indian stock market benchmark indices ended with modest losses after hitting their fresh record high during the session.
The Sensex fell 58.80 points, or 0.08%, to close at 74,683.70, while the Nifty 50 index settled 23.55 points, or 0.1%, lower at 22,642.75.
“We expect the uptrend to continue amid healthy Q4 business updates and strong macro data. With the start of the result season, stock-specific action is likely to continue in the market. Agri and rural-related stocks are expected to be in focus after Skymet forecast a normal monsoon for India in 2024,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mostly lower on Wednesday after the release of Japan’s corporate inflation data.
Japan’s Nikkei 225 fell 0.18%, while the Topix declined 0.23%. Hong Kong’s Hang Seng index futures indicated a stronger opening. South Korea’s markets are closed.
Read here: Asia Stocks to Skew Higher Ahead of US Inflation: Markets Wrap
Gift Nifty Today
Gift Nifty was trading around the 22,813 level, a premium of nearly 80 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
The US stock market ended mixed on Tuesday, a day ahead of major inflation data, weighed down by financial stocks.
The Dow Jones Industrial Average fell 9.13 points, or 0.02%, to 38,883.67, while the S&P 500 rose 7.52 points, or 0.14%, to 5,209.91. The Nasdaq Composite ended 52.68 points, or 0.32%, higher at 16,306.64.
Among stocks, Alphabet share price rose 1.1% to hit a fresh high with its market cap nearing the $2 trillion threshold. Moderna shares rallied 6.2%.
Exchange operator Coinbase Global shares declined 5.5% and software company MicroStrategy shares fell 4.8%.
Japan’s Corporate Inflation
Japan’s corporate goods price index rose 0.8% in March from a year ago, the third straight month of increase, accelerating from the revised 0.7% increase in February, in line with expectations from economists polled by Reuters. On a month on month basis, Japan’s CGPI rose 0.2%.
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Currencies
The US dollar consolidated ahead of the key inflation report. The US dollar index, which measures the greenback against six rivals, held firm at 104.10.
The Japanese yen strengthened 0.06% to 151.70 per dollar, close to its 34-year low. The euro was steady at $1.085575 and the Sterling was mostly flat at $1.26760.
Oil Prices
Crude oil prices held steady after two straight days of losses. Brent crude futures rose 0.01% to $89.43 per barrel, while US West Texas Intermediate (WTI) crude futures gained 0.04% to $85.26.
US Treasury Yields
US Treasury yields fell from a more than 4-month high as investors awaited the inflation data.
The benchmark US 10-year Treasury yield fell 6.6 basis points to 4.358%, while the 30-year bond yield fell 5.7 bps to 4.4964%. The yield on the 2-year note fell 5.1 bps to 4.7384%.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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