The market is expected to open in the red as trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 14 points.
The BSE Sensex soared 600 points to 61,032, while the Nifty50 jumped 159 points to 17,930 and formed a bullish candle on the daily charts, making a higher-high-higher-low formation. The index hit an intraday high of 17,955, which is a cluster of 50-day EMA (exponential moving average - 17,960), the Budget Day's high, and the point of downward sloping resistance trendline adjoining the previous major swing highs.
As per the pivot charts, the Nifty has support at 17,836 followed by 17,799 and then 17,740. If the index moves up, the key resistance levels to watch out for are 17,954, followed by 17,990 and 18,049.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
US Markets
Wall Street stocks ended mixed on Tuesday after US consumer price data for January offered little to change expectations about the Federal Reserve's path forward on interest rate hikes.
The S&P 500 declined 0.03 percent to end at 4,136.17 points. The Nasdaq gained 0.57 percent at 11,960.15 points, while Dow Jones Industrial Average declined 0.46 percent to 34,089.40 points.
Asian Markets
Asia Pacific markets traded mixed on Wednesday after the release of US inflation data that came in hotter-than-expected.
The Nikkei 225 opened the day 0.36 percent higher, while the Topix gained 0.28 percent in its first hour of trading. In Australia, the S&P/ASX 200 was trading 0.62 percent lower, as investors digested the US inflation data.
SGX Nifty
Trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 14 points. The Nifty futures were trading around 17,913 levels on the Singaporean exchange.
US inflation rose 0.5% in January, up 6.4% from a year ago
The US Bureau of Labor Statistics reported on Friday that the Consumer Price Index (CPI) rose by 6.4 percent from January 2022, slightly higher than the estimated rate of 6.3 percent.
Inflation in the US continued to surge in January, with the latest data showing higher-than-expected increases both year-on-year and month-on-month. The US Bureau of Labor Statistics reported on Friday that the Consumer Price Index (CPI) rose by 6.4 percent from January 2022, slightly higher than the estimated rate of 6.3 percent.
On a month-on-month basis, the CPI increased by 0.5 percent, surpassing the projected rate of 0.4 percent. The Core Inflation Rate also rose by 0.4 percent, exceeding the expected 0.3 percent increase.
Oil settles down 1%, then drops more on hint of big US crude build
Oil prices settled 1 percent lower on Tuesday as traders worried about mounting supplies, and prices extended losses in post-settlement trading after sources said data from the American Petroleum Institute showed a large build in US crude oil and distillate inventories.
Sources said the industry group reported a crude oil build of 10.5 million barrels in the week ended February 10.
Brent futures for April delivery fell $1.03, or 1.2 percent, to $85.58 a barrel by 1:05pm EST (1805 GMT). US West Texas Intermediate crude futures for March fell by $1.08, or 1.4 percent, to $79.06 a barrel.
Bond yield eases marginally after hitting over 2-week high
The yield on the 10-year benchmark bond eased marginally after hitting an over two-week high in the morning on buying by banks amid attractive prices and better-than-expected cut-offs at state development loan auctions, dealers said.
“At these levels, most investors are buying as they find it attractive. There is also some short covering by traders, which resulted in easing yields,” a dealer with a state-owned bank said. The benchmark 7.26 percent 2032 bond yield touched 7.4060 percent in the morning on February 14 – the highest since January 30, 2022, – and then eased to 7.3778 percent.
WPI inflation eases to 2-year low of 4.73% in January; food items turned expensive
The wholesale price-based inflation declined to 2-year low of 4.73 per cent in January on easing prices of manufactured items, fuel and power, even though food articles turned expensive. This is the eight straight month of decline in the rate of wholesale price-index (WPI) based inflation. It was 4.95 per cent in December 2022 and 13.68 per cent in January last year.
”Decline in the rate of inflation in January, 2023 is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products,” the Commerce and Industry Ministry said on Tuesday.
The decline in the rate of price rise was mainly due to a favourable base effect, economists said, adding that going forward, softening commodity prices would help ease WPI inflation further.
Results on February 15
JBF Industries, Crazy Infotech, Velox Industries, Vision Cinemas, and Vantage Knowledge Academy will be in focus ahead of their quarterly earnings on February 15.
FII and DII data
Foreign institutional investors (FII) bought shares worth Rs 1,305.30 crore, while domestic institutional investors (DII) purchased shares worth Rs 204.79 crore on February 14, NSE's provisional data showed.
Stocks under F&O ban on NSE
The National Stock Exchange has retained BHEL, Punjab National Bank, Ambuja Cements and Indiabulls Housing Finance on its F&O ban list for February 15. Securities banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies
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