The Indian stock market indices got off to a gap-down start as Gift Nifty traded around 22,130, a discount of more than 100 points from the Nifty futures’ previous finish.
Overnight, stock markets in the US and Asia tumbled as the US Federal Reserve may scale back on rate reduction this year in response to higher-than-expected US producer prices.
On Friday, domestic equity indices Nifty and Sensex are likely to start the day down in response to global market volatility.
Overnight, stock markets in the US and Asia tumbled as the US Federal Reserve may scale back on rate reduction this year in response to higher-than-expected US producer prices.
Rates will likely remain steady at next week’s US Federal Reserve policy meeting. According to Reuters, CME’s FedWatch Tool revealed that the market’s odds of a 25 basis point decrease at the June meeting have dropped to 62.9% from 81.7% a week ago.
Mid- and small-cap indices in India outperformed the market leaders on Thursday, although the frontliners saw a significant rebound to finish higher, driven by buying in energy and metals equities.
At 73,097.28, the Sensex gained 335.39 points, or 0.46%, and the Nifty 50 finished at 22,146.65, up 148.95 points, or 0.7%.
Retail investors should use this correction to their advantage by purchasing quality stocks in three or four installments, since we anticipate that broader market volatility will persist in the foreseeable future. According to Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services Ltd., “valuations are comfortable along with steady growth prospects,” therefore investing in largecaps is a good idea.
In the wake of a heated US inflation data, Asian markets fell on Friday, mirroring Wall Street’s overnight losses.
The Topix rose 0.3% while the Nikkei 225 fell 0.4% in Japan. The Kosdaq plummeted 0.9% and the South Korean Kospi fell about 1%. Futures on the Hang Seng index in Hong Kong pointed to an opening lower than expected.
The Indian stock market indices got off to a gap-down start as Gift Nifty traded around 22,130, a discount of more than 100 points from the Nifty futures’ previous finish.
Thursday’s decline in US stock market indices was driven by further selling in chipmaker equities following a two-day uptick in producer prices.
The S&P 500 lost 14.83 points, or 0.29%, to 5,150.48, and the Dow Jones Industrial Average lost 137.66 points, or 0.35%, to 38,905.66. At 16,128.53, the Nasdaq Composite closed down 49.24 points, or 0.3%.
Among the equities, Robinhood Markets’ share price increased 5.2% and Nvidia’s share price decreased 3.2%.
Due to a spike in the cost of products such as food and gasoline, US producer prices rose more than anticipated in February. The final demand producer price index increased 0.6% in February following a 0.3% gain in January that was not altered. According to Reuters’s poll of economists, the PPI was expected to rise 0.3%. There was the biggest annual gain since September, when the gauge jumped 1.6% over the previous year.
February’s US retail sales increase was below expectations, indicating that first-quarter consumer spending slowed. A month ago, retail sales were up 0.6%. Sales for December were similarly lowered, while January’s data showed a 1.1% decline rather than the previously stated 0.8%. Retail sales were expected to grow 0.8% in February, according to economists polled by Reuters. In February, they rose 1.5% compared to the previous year.
Yields on US government bonds reached their highest point in over a week following producer pricing data that cast doubt on the likelihood of interest rate decreases this year from the Federal Reserve.
Both the benchmark 10-year note rate and the 30-year bond yield increased by 10 basis points (bps) to 4.29% and 4.44%, respectively, reaching their highest levels since March 1.
Reuters said the hotter-than-expected producer pricing data bolstered the US dollar on Thursday. Last night, the dollar index, which measures the value of the dollar relative to six major currencies, rose 0.6% to 103.36. The index was on track for its biggest weekly advance since mid-January, with a 0.6% increase for the week.
Continue reading: Oil prices reach 5-month high as IEA revises demand prediction due to tighter market conditions; Brent at $85/bbl
Despite a small decline on Friday, crude oil prices were still expected to rise by over 4% for the week.
After breaking beyond $85 per barrel for the first time since November on Thursday, May Brent crude oil futures declined 0.5% to $85.01 per barrel. After a 4.8% gain in the past two sessions, April US West Texas Intermediate (WTI) crude oil dipped 0.4% to $80.94.