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Market may open on firm note

Published on Jul 13, 2022 08:28

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 64 points at the opening bell.

On the macro front, India`s factory output, measured in terms of Index of Industrial Production (IIP), witnessed a growth of 19.6% in May 2022. IIP grew 7.1% in April 2022. The manufacturing sector recorded a growth of 20.6% in May. The mining sector rose by 10.9% and the electricity sector climbed 23.5%.

India`s headline retail inflation rate, as measured by the Consumer Price Index (CPI), stood at 7.01% in June 2022 from 7.04% in May 2022, data released on 12 July 2022 by the Ministry of Statistics and Programme Implementation showed.

Global markets:

Overseas, Asian stocks are trading mixed on Wednesday as China releases trade data, and the Bank of Korea and Reserve Bank of New Zealand hike rates. Thailand`s stock exchange is closed for a holiday Wednesday.

The Bank of Korea raised rates by 50 basis points for the first time, bringing the rate to 2.25%. That`s in line with analyst expectations.

The Reserve Bank of New Zealand also increased rates by 50 basis points to 2.5%.

U.S. stocks dropped on Tuesday as worries over global economic growth dented investor appetite for risk assets. PepsiCo kicked off the corporate earnings season on Tuesday, reporting a better-than-expected quarterly profit and revenue and raising its revenue outlook for the year.

The U.S. will report consumer price index data later Wednesday, and markets are expecting hot inflation, which would keep the Fed firmly on its hiking path.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) forecast that world oil demand will rise further next year, but at a slightly slower rate than in 2022, with consumption supported by better containment of the COVID-19 pandemic and still-robust global economic growth.

In a monthly report, the OPEC said it expects world oil demand to rise by 2.7 million barrels per day (bpd) in 2023. This year`s growth forecast was left unchanged at 3.36 million bpd.

Domestic markets:

Back home, the key equity indices ended with deep cuts on Tuesday amid negative global cues. The barometer index, the S&P BSE Sensex, was down 508.62 points or 0.94% to 53,886.61. The Nifty 50 index fell 157.70 points or 0.97% to 16,058.30.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,565.68 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 140.71 crore in the Indian equity market on 12 July, provisional data showed.

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