Indian stock market: Indian equity benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Friday tracking mixed global market cues, while investors will take cues from the domestic corporate earnings for the December 2023 quarter.
Asian markets traded mixed, while the US stock indices ended lower overnight as mixed economic data and Fed officials’ comments led investors to scale back expectations for the timing and size of any rate cuts from the US Federal Reserve this year.
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On Thursday, the Indian stock market indices ended the volatile session with marginal gains amid largely positive global cues.
The Sensex rose 63.47 points, or 0.09%, to close at 71,721.18, while the Nifty 50 settled 28.50 points, or 0.13%, higher at 21,647.20.
“We expect the market to trade within the current range, along with stock-specific actions. IT space is expected to be in focus as investors would react to TCS and Infosys Q3 results,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
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Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded mostly lower Friday tracking overnight losses on Wall Street, while investors watched out for key economic data from China.
Japanese markets outperformed the peers with both the indices Nikkei 225 and Topix trading at their highest levels since 1990. The Nikkei gained 2.1%, while Topix rose 0.53%.
South Korea’s Kospi fell 0.15% and Kosdaq declined 0.65%. Hong Kong’s Hang Seng index futures pointed to a weaker open.
Gift Nifty
Gift Nifty was trading around 21,709 level as compared with Nifty futures’ previous close of 21,690, indicating a weak start for the Indian benchmark indices.
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US Stock Market
US stock market indices fell on Thursday as higher-than-expected inflation and signs of labor market strength dampened hopes for early interest rate cuts by the US Federal Reserve this year.
The Dow Jones Industrial Average fell 64.84 points, or 0.19%, to 37,631.42, while the S&P 500 declined 12.62 points, or 0.25%, to 4,771.38. The Nasdaq Composite ended 31.90 points, or 0.21%, lower at 14,938.63.
Among stocks, Microsoft briefly overtook Apple as the world’s most valuable company. Microsoft share price rose 0.5%, while Apple shares dropped 0.6%.
Citigroup shares fell 2%, JPMorgan Chase eased 0.7%, Bank of America share price declined 1.7% and Wells Fargo dropped 1.6%.
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US Inflation
US consumer prices increased more than expected in December. The consumer price index (CPI) rose 0.3% last month after nudging up 0.1% in November, the Labor Department’s Bureau of Labor Statistics said on Thursday.
In the 12 months through December, the CPI rose 3.4% after increasing 3.1% in November. Economists polled by Reuters had forecast the CPI gaining 0.2% on the month and climbing 3.2% on a year-on-year basis.
US jobless claims falls
The number of Americans applying for unemployment benefits fell to its lowest level in nearly three months last week. Jobless claim applications fell to 202,000 for the week ending January 6, down by 1,000 from the previous week, the Labor Department reported. The four-week average of claims, which evens out some of the week-to-week volatility, ticked down by 250 to 207,750.
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Fed’s Mester on rate cut
The rocky path of getting inflation back to the US Fed’s 2% target rate reflected in the CPI figures means that it would likely be too soon for the central bank to cut its policy rate in March, Cleveland Fed President Loretta Mester said.
“I think March is probably too early in my estimation for a rate decline because I think we need to see some more evidence,” Mester said in an interview with Bloomberg TV. “I think the December CPI report just shows there is more work to do and that work is going to take restrictive monetary policy.”
China inflation drops for third month
China’s consumer prices fell for a third straight month in December, Bloomberg News reported. The country’s consumer price index fell 0.3%, less than economists’ expectations of a 0.4% decline and followed falls in October and November. The producer price index, which measures factory-gate prices, fell 2.7% on-year.
Oil prices rise
Crude oil prices jumped after the US and UK launched airstrikes on Houthi rebel targets in Yemen, following the militant group’s attacks on ships in the Red Sea.
Brent crude oil rose 1.74% to $78.76 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 1.86% to $73.36.
Also Read: TCS, Infosys Q3 Results: Here’s how both stocks are likely to open today
IT Sector Q3 Results
Indian IT services majors Tata Consultancy Services (TCS) and Infosys reported their Q3 results on Thursday, kicking off the earnings season for the third quarter of FY24. TCS reported 6% sequential rise in Q3FY24 net profit to ₹12,016 crore, while its revenue increased 1.5% QoQ to ₹60,583 crore.
Infosys reported weak Q3 results with a 1.7% sequential fall in its consolidated net profit to ₹6,106 crore and revenue falling 0.4% QoQ to ₹38,821 crore.
India’s net direct tax collection rises 19%
India’s net direct tax collection increased 19% to ₹14.71 lakh crore in the current fiscal so far, the income tax department said. The gross collection is 24.58% higher than the gross collection for the corresponding period of last year.
(With inputs from Agencies)
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 taking any investment decisions.
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