Indices could see flat opening

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could fall 9 points at the opening bell.

Global markets:

Asian stocks were mixed on Wednesday, as traders digested conflicting U.S. producer price data and awaited the critical consumer price report later in the day, which is expected to impact the Federal Reserve`s near-term policy decisions.

The Nasdaq closed at a new all-time high on Tuesday as U.S. stocks rallied, dismissing data indicating higher-than-anticipated April wholesale inflation. The tech-heavy index ended up 0.8%. The Dow Jones Industrial Average gained 0.3%, and the broad-based S&P 500 rose 0.5%.

U.S. wholesale prices surged by 0.5% in April, exceeding expectations, in a trend that could lead to extended periods of higher Federal Reserve interest rates. All eyes are now on Wednesday`s U.S. consumer price report.

Domestic Markets:

Domestic stocks rallied for a third straight day on Tuesday, shrugging off election jitters. The Nifty 50 closed above 22,200, fueled by buying in metals, autos, and oil & gas. While the wait-and-see approach dominates due to ongoing elections, a close above 73,000 on the Sensex is a bullish sign. However, caution lingers due to upcoming US inflation data as higher inflation could dampen rate cut hopes. Technically, the Nifty 50 needs to stay above 22,200 to maintain its upward climb.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,065.52 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,527.86 crore in the Indian equity market on 14 May 2024, provisional data showed.

FPIs have sold shares worth over Rs 33539.94 crore in May so far. They offloaded shares worth 35692 crore in April 2024.

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