The Indian stock market: In response to weakness in international markets, the domestic equities indices, the Sensex and Nifty, are predicted to open lower on Friday.
As the US stock market closed lower overnight, Asian markets experienced a decline. This was due to the US Federal Reserve potentially reducing the number of rate cuts this year due to higher-than-expected US producer prices.
Rates are anticipated to remain steady at the US Federal Reserve’s policy meeting next week. According to CME’s FedWatch Tool, the market has reduced the likelihood of a cut of at least 25 basis points at its June meeting from 81.7% a week ago to 62.9%. This is in line with reports from Reuters.
The purchase of energy and metals companies propelled the rapid rally in the Indian stock market indices on Thursday, with the mid- and small-cap indices outperforming the front-runners.
The Nifty 50 finished 148.95 points, or 0.7%, higher at 22,146.65, while the Sensex gained 335.39 points, or 0.46%, to close at 73,097.28.
We anticipate that there will be more volatility in the market in the near future, therefore retail investors should seize this correction as a chance to buy quality names in three to four tranches. We recommend allocating a larger portion of your portfolio to large-cap stocks since they have stable growth prospects and reasonable prices, according to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.
Markets in Asia
Following Wall Street’s overnight losses following an intense US inflation data, Asian markets saw a decline on Friday.
The Topix increased by 0.3%, while Japan’s Nikkei 225 fell by 0.4%. The Kospi in South Korea declined by about 1%, while the Kosdaq fell by 0.9%. Futures for Hong Kong’s Hang Seng index pointed to a lower opening.
Gift Nifty Today The Indian stock market indices were off to a gap-down start as Gift Nifty was trading at about 22,130, a discount of more than 100 points from the Nifty futures’ previous close.
Following a rise in producer prices and a second day of selling in chipmaker equities, Wall Street US stock market indices closed Thursday down.
The S&P 500 dropped 14.83 points, or 0.29%, to 5,150.48, while the Dow Jones Industrial Average sank 137.66 points, or 0.35%, to 38,905.66. At 16,128.53, the Nasdaq Composite finished 49.24 points, or 0.3%, down.
In terms of stocks, Robinhood Markets had a 5.2% increase in share price, while Nvidia’s fell 3.2%.
US PPI Information
In February, US producer prices rose more than anticipated due to a spike in the price of commodities like food and fuel. After increasing by an unrevised 0.3% in January, the producer price index for final demand increased by 0.6% last month. A Reuters survey of economists predicted that the PPI will increase by 0.3%. The gauge saw its biggest yearly gain since September, increasing 1.6% from a year ago.