Before Market Opens: From HUL results to US markets; 9 things to know at 9 am on January 20, 2023

US stock indexes closed lower on Thursday after data pointing to a tight labor market renewed concerns the Federal Reserve will continue its aggressive path of rate hikes that could lead the economy into a recession. The Dow Jones Industrial Average fell 252.4 points, or 0.76%, to 33,044.56, the S&P 500 lost 30.01 points, or 0.76%, to 3,898.85 and the Nasdaq Composite dropped 104.74 points, or 0.96%, to 10,852.27.

Markets in the Asia-Pacific traded mostly higher on Friday as investors digested Japan’s inflation data. The nationwide core consumer price index rose 4% in December on an annualized basis, the fastest pace since 1981. The Nikkei 225 gained 0.02% and the Topix traded 0.15% higher. The Kospi in South Korea fell 0.21%, bucking the regional trend while the Kosdaq gained 0.14%. In Australia the S&P/ASX 200 pared earlier losses to gain 0.13%.

At 8:20 am, the SGX Nifty was trading 26 points or 0.14 percent higher at 18,139, indicating a positive opening for the Indian markets. 

Indian equity benchmarks the Sensex and the Nifty snapped their two-day winning run amid weak global cues on January 19 as investors remained concerned over a recession in the US. Global markets were under gloom after weak US consumer data raised recession worries. Sensex fell 187 points, or 0.31 percent, to 60,858.43 while the Nifty ended at 18,107.85, down 58 points, or 0.32 percent.

Oil prices settled 1% higher on Thursday, extending a recent rally built around rising Chinese demand, while the market wrote off a second straight week of large builds in US crude inventories. Brent crude futures gained $1.18, or 1.4%, to settle at $86.16 per barrel, while US West Texas Intermediate (WTI) crude futures rose by 85 cents, or 1.1%, to settle at $80.33 per barrel.

The US Federal Reserve will end its tightening cycle after a 25-basis-point hike at each of its next two policy meetings and then likely hold interest rates steady for at least the rest of the year, according to most economists in a Reuters poll. Fed officials broadly agree the U.S. central bank should slow the pace of tightening to assess the impact of the rate hikes. The Fed raised its benchmark overnight interest rate by 425 basis points last year, with the bulk of the tightening coming in 75- and 50-basis-point moves.

Foreign institutional investors (FII) bought shares worth ₹399.98 crore, whereas domestic institutional investors (DII) net sold shares worth ₹128.96 crore on January 19, as per provisional data available on the NSE.

The rupee slipped 11 paise to close at 81.36 per dollar in the previous session amid weakness in the domestic equity market. Meanwhile, the dollar index was headed for a second consecutive weekly decline.

Gold prices held steady on January 20 but were on track for a fifth straight weekly gain, as a weaker dollar and hopes of slower US interest rate hikes boosted safe-haven bullion's appeal, reported Reuters.