The Indian stock market indices, Sensex and Nifty 50, are expected to open lower on Friday tracking weak global cues amid losses in Asian and US markets.
Asian markets were trading lower, while the US stock market ended in the red overnight amid a surge in bond yields after the release of US inflation data.
US inflation data for September came in higher than expected, bolstering bets that the interest rates will remain high.
Meanwhile, domestic investors will also react to domestic inflation data, industrial output data and September quarter corporate earnings.
On Thursday, the domestic equity indices ended with minor losses dragged by IT stocks. The BSE Sensex slipped 64.66 points, or 0.10%, to 66,408.39, while the broader NSE Nifty 50 index settled 17.35 points, or 0.09%, lower at 19,794.00.
“The lacklustre trend with a negative bias was seen despite optimism across the global equities on hopes interest rates could remain steady in view of global macro-economic woes,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded lower following overnight losses on Wall Street as Treasury yields surged after US inflation data.
Japan’s Nikkei 225 fell 0.43%, while South Korea’s Kospi dipped 0.89%.
Hong Kong’s Hang Seng index futures were trading lower at 17,911 compared to the HSI’s close of 18,238.21.
Australia’s S&P/ASX 200 fell 0.54%.
Gift Nifty was trading around 19,690 level as against Nifty 50 futures’ previous close of 19,842, indicating a gap-down start for the Indian benchmark indices.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — October 13
Wall Street
US stock market indices ended lower on Thursday after data showed consumer prices rose more than anticipated in September, while a US Treasury auction sent bond yields higher.
The Dow Jones Industrial Average declined 173.73 points, or 0.51%, to 33,631.14, while the S&P 500 dropped 27.34 points, or 0.62%, to 4,349.61. The Nasdaq Composite ended 85.46 points, or 0.63%, lower at 13,574.22.
US benchmark 10-year yields rose as high as 4.728%, its highest-level since Friday.
Among stocks, Fastenal jumped 7.5% after the company beat third-quarter profit estimates. Ford Motor fell 2% after the United Auto Workers (UAW) union expanded its strike at the company’s biggest and most profitable factory, Reuters reported.
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US Inflation
US consumer prices increased in September amid higher costs for rent and gasoline. The consumer price index increased 0.4% last month, the Labor Department said. The CPI jumped 0.6% in August, which was the largest increase in 14 months.
In the 12 months through September, the CPI advanced 3.7% after rising by the same margin in August. Economists polled by Reuters had forecast the CPI gaining 0.3% and climbing 3.6% year-on-year.
US Treasury yields surge
US Treasury yields rose and the dollar strengthened on Thursday after data showed US consumer prices increased more than expected in September, underpinning views that the interest rates in US may need to remain high for longer. An auction of US 30-year bonds showing poor demand also sent Treasury yields higher, Reuters reported.
CPI inflation drops; industrial output at 14-month high
India’s headline retail inflation rate, or the Consumer Price Index (CPI), cooled down to a three-month low of 5.02% in September led by drop in vegetable prices, according to data released by the Ministry of Statistics and Programme Implementation on Thursday. Inflation print for August was 6.83%.
Read here: India’s retail inflation eases to 5.02% in September, comes within RBI’s tolerance mark after two months
Meanwhile, the industrial output rose in August as the Index of Industrial Production (IIP) increased by 10.3%, showed the official data released by the National Statistical Office (NSO). According to the latest IIP data, the industrial growth in August 2023 is the highest in 14 months.
Q2 Results
Infosys, India’s second largest IT services firm, reported a 4.5% rise in its consolidated net profit for the quarter ended September 2023 to ₹6,212 crore as against ₹5,945 crore in the previous quarter. The company’s consolidated revenue from operations rose 2.8% to ₹38,994 crore in Q2FY24 from ₹37,933 crore, QoQ.
Infosys trimmed revenue growth guidance for the full year to 1%-2.5% from 1%-3.5% earlier.
Read here: Infosys Q2 Results: Net profit inches up 3.2% on year to ₹6,212 crore; Infosys cuts revenue guidance
Meanwhile, HCL Technologies reported 8.55% QoQ growth in Q2FY24 net profit at ₹3,833 crore. Its consolidated revenue for the quarter rose 1.4% QoQ to ₹26,672 crore. In constant currency (CC) terms, revenue grew 1% QoQ.
The third largest IT services company, HCL Technologies cut its YoY organic revenue growth guidance in CC terms for FY24 to 4-5% from 6-8% previously.
(With inputs from Reuters)
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