Asian markets traded lower after key economic data from China and reports that US President Joe Biden plans to hike tariffs on some goods from the world’s second-largest economy.
This week, investors will watch out for key stock market triggers including the ongoing Q4 results, India’s retail inflation data, domestic and global macroeconomic data, trends in foreign capital flows, crude oil prices, and other global market cues.
On Friday, the Indian stock market benchmark indices ended higher, but lost over 2% each for the week, with heavy selling seen in broader markets.
The Sensex gained 260.30 points, or 0.36%, to close at 72,664.47, while the Nifty 50 settled 97.70 points, or 0.44%, higher at 22,055.20.
“Heavy FII selling, and concerns over the outcome of ongoing general elections added to the overall pressure in the markets. Result season has picked up pace with a lot of heavyweight results leading to stock specific action. The fourth phase of ongoing lok sabha election today may and may add to some volatility. Overall, we expect the market to consolidate in a broader range and take cues from Q4 results, global factors and news flows around the general election,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Monday as investors assessed China’s inflation data and watched out for other key economic data from the region.
Japan’s Nikkei 225 fell 0.32% and Topix dropped 0.46%. South Korea’s Kospi rose 0.29%, while the Kosdaq declined marginally. Hong Kong’s Hang Seng index futures indicated a weaker opening.
Also Read: ‘Market expecting positive end to the elections’
Gift Nifty Today
Gift Nifty was trading around 22,095 level, a discount of nearly 45 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stocks ended mixed on Friday and all three indexes posted another weekly advance as investors took cues from the comments of Federal Reserve officials.
The Dow Jones Industrial Average gained 125.08 points, or 0.32%, to 39,512.84, while the S&P 500 rose 8.6 points, or 0.16%, to 5,222.68. The Nasdaq Composite ended 5.40 points, or 0.03%, lower at 16,340.87.
Among stocks, Nvidia share price rose 1.3%, while SoundHound AI shares jumped 7.2%. Novavax stock price surged 98.7% on a deal worth up to $1.2 billion with Sanofi.
Also Read: Wall Street week ahead: Investors’ focus on inflation & retail sales data, Walmart earnings
US Consumer Sentiment
US consumer sentiment sagged to a six-month low in May. The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 67.4 this month, the lowest level since last November, compared to a final reading of 77.2 in April. Economists polled by Reuters had forecast a preliminary reading of 76.0.
US Fed Officials
Atlanta Fed President Raphael Bostic acknowledged recent clues the economy is slowing, but added the timing of rate cuts remains uncertain. Dallas Fed President Lorie Logan said it was unclear whether monetary policy was tight enough to bring inflation down to the central bank’s 2% target.
China Inflation
China’s consumer prices rose for a third straight month in April, while producer prices extended declines. Consumer prices increased 0.3% in April from a year earlier, versus a rise of 0.1% in March and a Reuters poll forecast for an increase of 0.2%. Overall the consumer price index (CPI) rose 0.1% from the previous month, beating a forecast fall of 0.1% in the poll and reversing a drop of 1% in March.
The producer price index (PPI) dropped 2.5% in April from a year earlier, easing from a slide of 2.8% the previous month but extending a 1-1/2-year-long stretch of declines.
India IIP
India’s factory output slowed in March as the Index of Industrial Production (IIP) growth rate fell to 4.9% in March from 5.7% in February, government data showed.
Read here: Factory output’s slower March doesn’t dampen annual momentum
Oil Prices
Crude oil prices declined after Iraq said it will not agree to more output cuts at the next OPEC meeting.
Brent crude oil dropped 0.33% to $82.52 a barrel, while the US West Texas Intermediate (WTI) crude futures fell 0.31% to $78.02 per barrel.
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 making any investment decisions.
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Published: 13 May 2024, 07:10 AM IST
