Market may slide on weak global cues
Published on Jan 19, 2023 08:36
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 95 points at the opening bell.
The December 2022 quarterly results season is underway. In the near future, the upcoming budget session would be the key event that the market would be looking for in January 2023. The Budget Session of Parliament is likely to begin on January 31 and is expected to conclude on April 6 with a recess in between. The Economic Survey will be tabled in both Houses on the first day of the budget session, as per reports. Finance Minister Nirmala Sitharaman is likely to present the Union Budget in Parliament on February 1.
Overseas, Asian stocks are trading mostly lower on Thursday after tracking losses on Wall Street overnight.
US stocks dropped sharply on Wednesday, their biggest daily drops in more than a month, after weak economic data fueled recession worries while hawkish comments from Federal Reserve officials soured investor moods further.
Cleveland Federal Reserve President Loretta Mester said Wednesday that interest rates have to keep moving higher even with recent inflation readings softening. As per reports, the policymaker said the Fed likely will have to take its benchmark interest rate above 5% in order to get inflation moving consistently down to the central bank`s 2% goal. She noted that markets and the economy absorbed the half-point December rate hike without a problem.
US retail sales fell by the most in a year in December. Retail sales plummeted 1.1% last month, the biggest drop since December 2021. Data for November was revised to show sales decreasing 1% instead of 0.6% as previously reported. Retail sales rose 6% year-on-year in December.
Back home, the benchmark indices registered strong gains on Wednesday, led by metals and financial stocks. The barometer index, the S&P BSE Sensex gained 390.02 points or 0.64% to 61,045.74. The Nifty 50 index added 112.05 points or 0.62% to 18,165.35.
Foreign portfolio investors (FPIs) sold shares worth Rs 319.23 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,225.96 crore in the Indian equity market on 18 January, provisional data showed.
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