Indian stock market: The domestic benchmark equity indices, Sensex and Nifty 50, are likely to open lower on Wednesday following a sell-off in global markets.
Asian markets traded lower, while the US stocks ended with deep cuts after sticky US inflation data dashed hopes for early interest rate cuts by the US Federal Reserve.
Higher than expected US inflation data lifted US dollar and treasury yields, which is expected to weigh on investors’ risk appetite.
On Tuesday, the Indian stock market indices ended higher led by gains in select banking heavyweights amid mixed global cues.
The Sensex gained 482.70 points, or 0.68%, to close at 71,555.19, while the Nifty 50 ended 127.20 points, or 0.59%, higher at 21,743.25.
“Going ahead Nifty is expected to remain in the broader range given the lack of positive triggers globally and mixed set of domestic Q3 earnings which too is unable to provide any support. All eyes will be on US inflation data, as it will hold key importance from the US Fed interest rate cut point of view,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — February 14
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower tracking overnight losses on Wall Street after US January inflation data came in hotter than estimated.
Japan’s Nikkei 225 declined 0.54% and the Topix dropped 0.68%. South Korea’s Kospi plunged 1.47%, while the Kosdaq fell 0.89%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 21,615 level, as compared with Nifty futures’ previous close of 21,816, indicating a gap-down start for the Indian stock market indices.
Also Read: Day trading guide for stock market today: Nine stocks to buy or sell on Wednesday — 14th February
Wall Street
The US stock market indices ended lower on Tuesday, with the Dow Jones Industrial Average posting its biggest one-day percentage drop in nearly 11 months, after higher-than-expected consumer inflation data pushed back expectations of imminent interest rate cuts and lifted US Treasury yields higher.
The Dow Jones Industrial Average plunged 522.05 points, or 1.36%, to 38,275.33, witnessing its biggest one-day percentage loss since March 22, 2023, while the the S&P 500 declined 68.14 points, or 1.37%, to end at 4,953.70. The Nasdaq Composite ended 282.64 points, or 1.79%, lower at 15,659.91.
Among megacap stocks, Microsoft, Alphabet, Amazon and Meta Platforms shares dropped between 1.6% and 2.2%.
JetBlue Airways shares surged 21.6%, Arista Networks shares fell 5.5%, while Cadence Design Systems dipped 4% and Tripadvisor stock jumped 13.8%.
US Inflation
US consumer prices rose more than expected in January amid higher costs of shelter and healthcare. The consumer price index (CPI) increased 0.3% last month after gaining 0.2% in December, data showed. In the 12 months through January, the CPI increased 3.1% as against 3.4% advance in December. Economists polled by Reuters had forecast the CPI rising 0.2% on the month and rising 2.9% year-on-year.
Read here: US consumer inflation reduces to 3.1% in January
US Treasury yields, dollar
The yields on US Treasury notes across the board spiked to two-month highs, while the dollar touched a three-month peak after data showed hotter than expected US inflation in January.
The benchmark US 10-year Treasury yield rose 14 basis points to 4.31% after reaching 4.314%, its highest level since December 1. The dollar index also touched a three-month high and was last up 0.68% at 104.86.
Yen breaches 150 level
The Japanese yen breached 150 per dollar level for the first time since November, weakening for a seventh straight session. The Japanese currency was around 150.73 against the dollar early Wednesday in Tokyo after a 1% plunge overnight.
Meanwhile, yields on 10-year Japanese government bonds spiked over 5.6% to 0.766, their highest level since December 11.
Oil prices
Crude oil prices settled higher on Tuesday as geopolitical tensions continued in the Middle East and eastern Europe.
Brent futures settled 77 cents higher or 0.94% at $82.77 a barrel, while the US West Texas Intermediate (WTI) crude settled 95 cents higher, or 1.24%, at $77.87 a barrel.
(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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