Indian Stock Market: Domestic stocks are expected to open higher on Thursday following gains in global peers.
US stocks closed overnight at record highs, while Asian markets rose as a weaker-than-expected rise in US consumer inflation raised expectations for interest rate cuts from the US Federal Reserve. did.
India’s stock market benchmark index ended lower on Wednesday, ending a three-day streak of gains.
The Sensex fell by 117.58 points or 0.16% to close at 72,987.03, while the Nifty 50 fell by 17.30 points or 0.08% to close at 22,200.55.
“Relentless FII selling and high India VIX levels are putting pressure on the market. We expect the market to consolidate more broadly as election voting progresses and results season draws to a close.” said Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services.
Here are the key clues for Sensex domestic and global markets today.
asian market
Asian markets rose on Thursday after Wall Street indexes hit record closes overnight and investors appreciated Japan’s GDP data.
Japan’s Nikkei Stock Average rose 0.9% and TOPIX rose 0.54%. South Korea’s Kospi rose 1.49% and Kosdaq rose 1.3%. Hong Kong’s Hang Seng Index futures showed a calm start.
Also read: Buy or sell: Vaishali Parekh recommends 3 stocks to buy today – May 16
Give a thoughtful gift today
Gift Nifty is trading around 22,385 levels, at a premium of nearly 100 points from the previous closing price of Nifty futures, indicating a gap upstart for the Indian stock market index.
wall street
US stock markets ended higher on Wednesday with all three major indexes hitting record closes as inflation slowed.
The Dow Jones Industrial Average rose 349.89 points, or 0.88%, to 39,908.00, and the S&P 500 rose 61.47 points, or 1.17%, to 5,308.15. The Nasdaq Composite Index rose 231.21 points, or 1.40%, to end at 16,742.39, closing in on its second record in just a few days.
Among stocks, NVIDIA stock rose 3.6%, Microsoft stock rose 1.7%, and Apple stock rose 1.2%. Super Microcomputer stock rose 15.8%.
GameStop shares fell 18.9%, AMC Entertainment shares fell 20% and Cos Corp shares plunged 19.2%.
Read here: US stock market: GameStop, AMC Entertainment stocks fall after two days of gains
us inflation
U.S. consumer prices rose less than expected in April, suggesting that inflation is trending downward again.
The U.S. consumer price index (CPI) rose 0.3% last month after rising 0.4% in March and February. The CPI rose 3.4% in the 12 months to April, after rising 3.5% in March. Economists polled by Reuters expected the CPI to rise 0.4% from the previous month and 3.4% from a year earlier.
Read here: The US inflation rate is on the decline again, falling to 0.3% in April.Core CPI drops for the first time in six months
US retail sales
U.S. retail sales were flat in April. Retail sales were unchanged last month, following a slightly downwardly revised 0.6% increase in March. It was previously announced that retail sales rose 0.7% in March. Economists polled by Reuters had expected retail sales, mostly goods and not adjusted for inflation, to rise 0.4% in April. Sales in April increased by 3.0% compared to the same month last year.
Japan’s GDP
Japan’s GDP contracted more than expected in the first three months of this year. Japan’s gross domestic product (GDP) contracted at an annual rate of 2% in the first quarter, exceeding the 1.5% forecast in a Reuters poll.
Government bond yield
US Treasury yields fell to a five-week low on the back of the inflation data. The benchmark 10-year bond yield was 4.32%, falling to 4.340%, its lowest level since April 5th. The two-year bond yield hit 4.711%, also the lowest level since April 5th.
dollar
The dollar fell to its lowest level in months as core U.S. inflation hit a three-year low. The dollar index fell 0.75% overnight, its biggest single-day drop so far this year, hitting a five-week low of 104.17 in early Asian trading, Reuters reported. .
india trade deficit
India’s merchandise trade deficit widened to $19.1 billion in April from $14.44 billion in April 2023, the highest level in four months. The merchandise trade deficit in March 2024 was $15.6 billion.
Read here: India’s merchandise trade deficit widens to $19.1 billion in April, the highest level in four months
crude oil price
Crude oil prices rose further on signs of stronger demand in the United States as inflation data slowed. Brent futures rose 0.52% to $83.18 per barrel, while US West Texas Intermediate crude oil (WTI) rose 0.58% to $79.09.
(Information provided by Reuters)
Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.
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