The Indian stock market is expected to remain cautious on Thursday, following a selloff in global markets, on increased risks of further interest rate hike by the US Federal Reserve after hotter-than-expected inflation data.
The trends on Gift Nifty also signal a negative start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 22,622 level, a discount of nearly 26 points from the Nifty futures' previous close.
In the previous session, the Indian stock market ended lower, with the benchmark Nifty 50 slipping below 22,700 level.
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The Sensex declined 251.89 points, or 0.34%, to close at 72,781.89, while the Nifty 50 settled 99.25 points, or 0.44%, lower at 22,622.70.
“Given elevated crude prices, persistent foreign fund outflows and uneven market breadth, market participants should remain selective, prioritising stock-specific opportunities and disciplined risk management,” said Ajit Mishra, SVP – research, Religare Broking.
Here are five key factors that are expected to drive the Indian stock market today:
Asian Markets
Asian markets traded lower, following overnight losses on Wall Street, dragged by selloff in chip-related stocks. Japan's Nikkei 225 slipped 3.57%, while the Topix declined 1.91%. South Korea's Kospi crashed 6.28%, while the Kosdaq plunged 7.28%. Hong Kong's Hang Seng index futures indicated a lower opening.
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Wall Street
US stock market ended lower after hotter-than-expected inflation data raised worries of more interest rate hikes from the Federal Reserve.
The Dow Jones Industrial Average fell 0.09% to 51,621.48, while the S&P 500 tanked 1.11% to end at 7,718.94. The Nasdaq closed 1.88% lower at 26,692.87.
US Inflation
US consumer prices accelerated in September, led by rise in gasoline costs. The US CPI rose 0.6% last month after climbing 0.4% in August. In the 12 months through September, the CPI rose 3.7% after advancing 3.4% in August.
Tech Stocks Selloff
Global technology hardware stocks witnessed heavy selloff. On Wall Street, Nvidia stock price fell 3.16%, AMD shares slipped 5.73%, Broadcom share price declined 3.10%, Intel shares shed 4.56% and Micron Technologies fell 4.08%.
In South Korea, SK Hynix shares cracked over 8%, Samsung Electronics shares plunged 7.1%, Seoul Semiconductor stock price declined 7% and LG Innotek slipped 8%,
In Japan, SoftBank Group shares sank 8.60%, Advantest tumbled 7.68%, and Tokyo Electron shares declined 6.01%.
Gold Rate Today
Gold prices held losses after a rise in US inflation stoked worries of further Fed rate hike. Spot gold price was unchanged at $4,102.60, while silver prices were flat at $55.53 an ounce.
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