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Stock market today: Nimble, Sensex opened lower

by SuperiorInvest


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  • India's Nifty and Sensex started Tuesday on a poor footing.
  • Nifty and Sensex fell on Monday amid profit-taking rush and cautious trends in global markets.
  • Astute traders and Sensex traders await US inflation data to get fresh trading impetus.

The Sensex 30 and Nifty 50, India's key benchmark indices, opened on a negative note on Tuesday, taking the lead from cautious trading on their Asian counterparts.

At the time of writing, the National Stock Exchange (NSE) Nifty 50 index is trying to recover, up 0.10% on the day to trade at 21,638.70. The Bombay Stock Exchange (BSE) Sensex 30 followed and rose 0.18% to 71,198.22.

News from the stock market

  • Heavyweight banks, metals and mining companies were the main laggards, while the pharmaceuticals and technology sectors helped limit declines on Monday.
  • Among the main gains were the laboratories of Dr. Reddy's (3.41%), Apollo Hospitals (2.80%), Wipro (2.52%), Divis Laboratories (2.29%), HCl Technologies (2.41%).
  • Major losers included Coal India (-4.76%), Hero Motocorp (-4.37%), Bharat Petroleum Corporation (-3.32%), Oil and Natural Gas Corporation (-3.25%), IndusInd Bank (-2.56%).
  • The initial public offering (IPO) of Alpex Solar Limited received an overwhelming response from investors as it saw 303 times subscription till the last day of the bidding process.
  • The rush to take profits and mixed trends in global markets can be attributed as the key factors behind the recent correction in Nifty and Sensex.
  • In terms of daily trading volumes, Indian markets have widened their lead over Hong Kong ever. While India's benchmark Nifty has risen 22% in the past year, Hong Kong's Hang Seng has eroded nearly 25%.
  • India's Consumer Price Index (CPI) inflation fell to a three-month low of 5.1% on Monday in January, but remains within the Reserve Bank of India's (RBI) tolerance band of 4 (+/- 2)% for the fifth straight month. .
  • Lunar New Year holidays in China and some major Asian markets could keep liquidity low around Indian indices. However, traders are looking forward to Tuesday's US CPI inflation report and Wednesday's release of the Wholesale Price Index (WPI) from India to give them fresh business impetus.
  • The US CPI data is likely to have a significant impact on the trajectory of the US Federal Reserve's (Fed) interest rates, which will set the tone for global markets in the coming days.

Economic indicator

United States Consumer Price Index (YoY)

Inflationary or deflationary tendencies are measured by periodically adding up the prices of a basket of representative goods and services and reporting the data as the Consumer Price Index (CPI). CPI data is compiled on a monthly basis and published by the US Department of Labor Statistics. Year-on-year data compare the prices of goods in the reference month with the same month of the previous year. The CPI is a key indicator for measuring inflation and changes in purchasing trends. Generally speaking, a high value is seen as bullish for the US dollar (USD), while a low value is seen as bearish.

Read more.

Next release: 13/02/2024 13:30:00 GMT

Frequency: Monthly

Source: US Bureau of Labor Statistics

The US Federal Reserve has a dual mandate of maintaining price stability and maximum employment. According to this mandate, inflation should hover around 2% year-on-year and has become the weakest pillar of the central bank's directive since the pandemic hit the world, which continues to this day. Price pressures continue to mount due to supply chain issues and bottlenecks, with the Consumer Price Index (CPI) hanging at multi-decade highs. The Fed has already taken steps to tame inflation and is expected to maintain an aggressive stance for the foreseeable future.

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