The Indian stock market is expected to open in the red as trends in the SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 149 points.
The BSE Sensex fell 276 points to 54,088, while the Nifty50 declined 73 points to 16,167 and formed bearish candle which resembles Hammer kind of pattern on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 16,000, followed by 15,833. If the index moves up, the key resistance levels to watch out for are 16,326 and 16,486.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
US Markets
Wall Street stocks closed sharply lower and Treasury yields fell in Wednesday's volatile session as oil prices rallied and investors worried about the potential for an economic slowdown. US equity indexes hadtraded higher and lower during the volatile session as investors picked through US inflation data for clues about the Federal Reserve's rate hiking path.
The Dow Jones Industrial Average fell 326.63 points, or 1.02 percent, to 31,834.11, the S&P 500 lost 65.87 points, or 1.65 percent, to 3,935.18 and the Nasdaq Composite dropped 373.44 points, or 3.18 percent, to 11,364.24.
Asian Markets
Shares in Asia-Pacific declined in Thursday morning trade following overnight losses on Wall Street — after data showed the consumer price index stateside in April remaining near the highest level in more than 40 years.
The Nikkei 225 in Japan fell 1.57 percent. The Topix index shed 1 percent. In South Korea, the Kospi traded 0.86 percent lower. Australian stocks also declined as the S&P/ASX 200 dipped 0.22 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.44 percent lower.
SGX Nifty
Trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 149 points. The Nifty futures were trading around 16,018 levels on the Singaporean exchange.
Oil up more than 5%, as Russia-EU energy quarrel intensifies
Oil prices rose more than 5 percent on Wednesday after flows of Russian gas to Europe fell and Russia sanctioned some European gas companies, adding to uncertainty in world energy markets.
Brent crude settled up $5.05, or 4.9 percent, to $107.51 a barrel, while US West Texas Intermediate crude climbed $5.95 a barrel to $105.71, a 6 percent increase.
US annual inflation slowed in April, consumer prices rise 8.3%
US consumer price inflation slowed slightly last month, jumping 8.3 percent compared to April 2021, according to government data released Wednesday. The annual increase in the consumer price index (CPI) peaked in March at 8.5 percent but slowed last month amid a drop in energy costs, the Labor Department reported.
CPI rose just 0.3 percent compared to March, after the 1.2 percent surge in the prior month, but excluding volatile food and energy goods, the index increased 0.6 percent -- double the rate in March, the report said.
Morgan Stanley cuts India's growth forecasts on inflation, global slowdown
Morgan Stanley has lowered its forecasts for India's economic growth in the next two fiscal years, saying a global slowdown, surging oil prices and weak domestic demand would take a toll on Asia's third-largest economy. Gross domestic product growth will be 7.6 percent for fiscal 2023 and 6.7 percent for fiscal 2024, 30 basis points lower than the previous estimates, the brokerage said in a note dated Tuesday.
The cut reflects a pronounced economic impact from the Russia-Ukraine conflict that has driven up crude prices, pushing retail inflation in India - the world's third-biggest oil importer - to its highest in 17 months.
"The key channels of impact will likely be higher inflation, weaker consumer demand, tighter financial conditions, the adverse impact on business sentiment, and a delay in capex recovery," said Upasana Chachra, Morgan Stanley's chief economist for India.
RBI may up inflation forecast in next MPC meeting; rate hike on cards: Sources
The Reserve Bank is likely to raise inflation projections in the Monetary Policy Committee (MPC) meeting next month and would also consider a rate hike to tame inflation which is above its comfort level, sources said.
The MPC, headed by the RBI Governor, is scheduled to meet between June 6 and June 8. It has been mandated to keep retail inflation in the range of 2-6 percent. Sources said the MPC would review the inflation scenario in the next meeting. The MPC had not changed inflation projections in an off-cycle meeting earlier this month.
Passenger vehicle dispatches dip 4% in April as supply challenges remain: SIAM
Passenger vehicle dispatches from factories to dealers in the domestic market declined by 4 percent in April as supply side challenges continued for the automotive industry, industry body SIAM said on Wednesday.
Total passenger vehicle domestic wholesales stood at 2,51,581 units last month as compared to 2,61,633 units in April 2021. Passenger car dispatches stood at 1,12,857 last month as against 1,41,194 units in the same month last year. Utility vehicle wholesales however increased to 1,27,213 units from 1,08,871 units in the year-ago period.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 3,609.35 crore, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 4,181.20 crore worth of shares on May 11, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
One stock – Indiabulls Housing Finance – is under the F&O ban for May 12. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies