The Indian stock market is likely to open lower on Wednesday tracking weak global cues amid overnight selloff in the US equities.
The Indian stock market is likely to open lower on Wednesday tracking weak global cues amid overnight selloff in the US equities.
Concerns that interest rates may remain higher for a longer time dampened investors’ sentiment.
Concerns that interest rates may remain higher for a longer time dampened investors’ sentiment.
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On the domestic front, Indian markets were shut on Tuesday on account of the Independence day holiday.
On Monday, the domestic benchmark indices ended flat. Sensex closed with a mild gain of 79.27 points, or 0.12%, at 65,401.92 while the Nifty50 closed 6.25 points, or 0.03%, up at 19,434.55.
Here are 5 key things to know before the Indian stock market opens today:
Asian Markets
Asian markets traded lower following overnight selloff on Wall Street after a fall in US banks.
Japan’s Nikkei 225 declined 0.82% and the Topix fell 0.68%. South Korea’s Kospi dropped 1.03%, while the Kosdaq lost 1.18%.
Hong Kong’s Hang Seng index futures traded lower at 18,360 as compared to the HSI’s close of 18,581.11.
Australia’s S&P/ASX 200 dipped 1.20%.
Meanwhile, Gift Nifty was trading lower at 19,365.50 as compared to Nifty futures’ Monday’s close of 19,471.20, indicating a weak opening for the Indian benchmark indices.
Wall Street
US stock indices ended sharply lower on Tuesday after stronger-than-expected retail sales data raised concerns that interest rates could stay higher for longer, while banking stocks declined after a report that Fitch could downgrade multiple US banks.
As per the Commerce Department report, retail sales in the US grew 0.7% last month against expectations of a 0.4% rise, suggesting the US economy remains strong, Reuters reported.
The S&P 500 declined 1.16% to end the session at 4,437.86, below its 50-day moving average for the first time since March. The Nasdaq fell 1.14% to 13,631.05, while the Dow Jones Industrial Average declined 1.02% to 34,946.39.
Banking shares slipped after a report said ratings agency Fitch could downgrade multiple banks. JPMorgan Chase share price fell 2.5%, Bank of America shares declined 3.2% and Wells Fargo dropped 2.3%.
Fitch mulls downgrading dozens of US bank, including JPMorgan
Fitch Ratings warned that the US banking industry has inched closer to another turbulence — the risk of rating downgrades on dozens of US banks that could even include JPMorgan Chase, a report from CNBC said Tuesday.
In June, the ratings agency lowered the score of the US banking industry’s “operating environment” to AA- from AA, citing pressure on the country’s credit rating, gaps in regulatory framework and uncertainty about the future trajectory of interest rate hikes.
Earlier this month, Moody’s had downgraded 10 mid-sized US banks and warned it may cut ratings of several others.
CPI Inflation
India’s consumer price index (CPI) inflation surged sharply to a 15-month high peak of 7.44% in July 2023, driven by high food and vegetable prices. July CPI print had breached the Reserve Bank of India’s (RBI) upper tolerance limit of 6% for the first time in five months.
Michael Burry’s $1.6 billion short bet against S&P 500, Nasdaq
Money manager Michael Burry held his bearish options against the broad S&P 500 and Nasdaq 100 Index at the end of the second quarter, reported Reuters on 14 August.
During the quarter, Burry’s Scion Asset Management bought put options with a notional value of $739 million against the popular Invesco QQQ Trust ETF. Also, it put options with a notional value of $886 million against the SPDR S&P 500 ETF, the report added.
(With inputs from Reuters)
