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.
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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