S&P 500, Nasdaq tumble after US CPI inflation moderates; GIFT Nifty up

Global Markets Outlook

The US markets dragged on July 11 with the S&P 500 and Nasdaq tumbling after the US CPI data for June came in lower than expected. At 9:15pm IST, the S&P 500 gave up early gains and traded 0.80 percent lower at 5,588. During morning trading hours, the index had created a fresh all-time high of 5,642.45. The Nasdaq Composite tumbled 1.83 percent to 18,306 after hitting a new record high of 18,671.07 earlier. However, the Dow Jones Industrial Average edged 0.16 percent higher to 39,785.

The US consumer price index fell 0.1 percent in June from May, against the Dow Jones estimates of a 0.1 percent increase. Further, the annual inflation in June was also reported at 3 percent against the street estimate of 3.1 percent. Investors pulled out of major tech stocks and diverted funds towards the small-caps and the housing sector.

Back home, Indian indices ended flat today with the Nifty at 24,315.95 and the Sensex at 79,897.34.

The GIFT Nifty traded 0.20 percent higher at 24,453.5.

DIIs net purchased Rs 1,676.47 crores in Indian equities while the FIIs/FPIs net sold Rs 1,137.01 crores.

The European markets gained for a second consecutive session. FTSE edged 0.36 percent higher to 8,223.34 and the CAC surged 0.71 percent to 7,627.13. The DAX also gained 0.72 percent to 18,540.10.

Earlier during the day, the Asian indices traded positive. Nikkei edged nearly a percent higher to a fresh high of 42,426.77 and the Hang Seng rallied over 2 percent to 17,832.33.

Crude extended gains by 0.66 percent to $82.64 and Brent also gained 0.51 percent to $85.51.