Indian stock market: Indian stock market is expected to open lower on Wednesday following weak cues from global markets on the back of rising oil prices.
US stocks ended sharply lower overnight, while Asian markets fell as investors weighed the possibility of the US Federal Reserve delaying interest rate cuts.
Rising U.S. bond yields and soaring oil prices could also worsen investor sentiment.
Indian stock market indexes on Tuesday ended a three-day bull run, dragged down by profit-taking in some private banks and auto stocks amid weakness in global indexes.
The Sensex fell by 110.64 points or 0.15% to close at 73,903.91, while the Nifty 50 fell by 8.70 points or 0.04% to close at 22,453.30.
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“After a sharp correction over the past few months, there is renewed optimism in small and mid-cap stocks across markets. There’s a lot of money out there,” said Prashanth Tapse, senior vice president (research) at Mehta Equities.
Here are today’s key global market cues for Sensex.
asian market
Asian markets fell on Wednesday following overnight losses on Wall Street. Japan’s Nikkei Stock Average fell 1.3%, and the TOPIX fell 0.82%. South Korea’s Kospi fell 0.8%, and the Kosdaq fell 1.24%. Hong Kong’s Hang Seng Index futures opened marginally lower.
Read here: Asian stocks fall as expectations for interest rate cuts begin to fade: markets have come full circle
Give a thoughtful gift today
Gift Nifty is trading around 22,465 levels, at a discount of nearly 110 points from the previous closing price of Nifty futures, indicating a negative start for the Indian stock market index.
wall street
U.S. stock market indexes ended sharply lower on Tuesday, but the 10-year Treasury yield rose to its highest level since late November as investors dialed back expectations for interest rate cuts this year.
The Dow Jones Industrial Average fell 396.61 points, or 1%, to 39,170.24, and the S&P 500 fell 37.96 points, or 0.72%, to 5,205.81. The Nasdaq Composite Index fell 156.38 points, or 0.95%, to end at 16,240.45.
Among stocks, Tesla stock fell 4.9%, and Calvin Klein’s parent company PVH Corp. stock also fell 22.2%.
US Federal Reserve Official
Federal Reserve officials reiterated that the central bank is in no hurry to cut rates. According to Reuters, San Francisco Fed President Mary Daly cited “real risks” of cutting interest rates too soon and locking in inflation too high. Cleveland Fed President Loretta Mester said she remains hopeful the central bank will be able to cut rates this year, noting that easing could begin at its June policy meeting if economic data allows.
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oil price
Oil prices extended their rally on the back of a larger-than-expected decline in US crude oil inventories and escalating geopolitical tensions. Brent crude oil futures for June delivery rose 0.22% to $89.12 a barrel, while U.S. West Texas Intermediate (WTI) crude oil futures for May delivery rose 0.2% to $85 a barrel. .32 dollars. The day before, both Brent and WTI had hit their highest since October.
US job information
As of the end of February, the number of job openings in the United States increased by 8,000 to 8,756,000. Data for January was revised downward to show 8.748 million unfilled positions instead of the 8.863 million previously reported. Economists compiled by Reuters had forecast 8.75 million job openings in February. The number of job openings reached a record high of 12 million in March 2022.
According to the Department of Labor’s Job Openings and Turnover Survey (JOLTS) report, the number of job openings per unemployed person was 1.36 in February, down from 1.43 in January.
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tesla sales
Tesla shares fell 4.9% after Elon Musk’s electric vehicle (EV) maker reported its first decline in quarterly deliveries in nearly four years, missing Wall Street expectations. Tesla’s first-quarter deliveries fell 8.5% year-on-year to 386,810 vehicles, while the company produced 433,371 vehicles in the same period. Wall Street had expected Tesla to deliver 454,200 vehicles.
Read here: Tesla stock falls more than 5% as sales plummet in the first quarter, rival EV makers also slump
gold price today
Gold prices extended their record gains on Wednesday, driven by a weaker dollar and safe-haven demand. Spot gold rose 0.2% to $2,283.47 an ounce after hitting an all-time high of $2,288.09 in early trading. U.S. gold futures rose 1% to $2,303.80 an ounce.
(Information provided by Reuters)
Disclaimer: The views and recommendations 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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