Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open higher on Wednesday amid positive cues from global markets.
Asian markets traded higher, while the US stock market ended volatile session mixed overnight after softer-than-expected producer price data.
On Tuesday, the Indian stock market ended higher after witnessing four consecutive days of selling pressure.
The Sensex rose 169.62 points, or 0.22%, to close at 76,499.63, while the Nifty 50 settled 90.10 points, or 0.39%, higher at 23,176.05.
“While there is a short-term relief in the market, overall weak global cues, fall in rupee, low earnings growth and FII outflows continue to weigh on sentiment, keeping the overall outlook cautious,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian markets traded higher on Wednesday after a mixed session on Wall Street overnight.
Japan’s Nikkei 225 rose 0.75%, while the Topix gained 0.86%. South Korea’s Kospi rallied 0.95% and the Kosdaq Index added 0.53%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty was trading around 23,305 level, a premium of nearly 33 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
US stock market ended Tuesday’s volatile session mixed as investors gauged softer-than-expected wholesale inflation data.
The Dow Jones Industrial Average rallied 221.16 points, or 0.52%, to 42,518.28, while the S&P 500 rose 6.69 points, or 0.11%, to 5,842.91. The Nasdaq Composite ended 43.71 points, or 0.23%, lower at 19,044.39.
Tesla share price fell 1.7%, while Nvidia stock price declined 1.1%. Goldman Sachs shares gained 1.52%, and Eli Lilly stock plunged 6.59%, while Boeing shares dropped 2.08%.
US producer prices increased moderately in December. The producer price index for final demand rose 0.2% last month after an unrevised 0.4% advance in November. Economists polled by Reuters had forecast the PPI climbing 0.3%. In the 12 months through December, the PPI accelerated 3.3% after increasing 3.0% in November.
US Treasury yields dipped while the dollar weakened, after softer wholesale inflation data. The yield on the benchmark 10-year Treasury note eased, but it remained close to its 14-month high. It was last down slightly at 4.788% after hitting 4.805% overnight, the highest since November 2023, Reuters reported.
The US dollar stabilised on Wednesday after falling overnight as traders turned cautious ahead of the US consumer inflation report. Against a basket of currencies, the dollar was last a touch higher at 109.23, but was some distance away from Monday’s peak of 110.17, its strongest level since November 2022.
The yen was little changed at 157.98 per dollar, the euro last bought $1.0301, while Sterling fell 0.09% to $1.2205.
Crude oil prices traded higher on US sanctions against Russian flows. Brent crude oil rose 0.15% to $80.04 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.23% to $77.68.
Gold prices were subdued as investors remained cautious ahead of the US consumer price inflation data. Spot gold eased 0.1% to $2,672.93 per ounce, while US gold futures gained 0.3% to $2,689.60.
(With inputs from Reuters)
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