Before Market Opens: From US market crash to SGX Nifty; 9 things to know at 9 am on September 14, 2022

A broad sell-off sent US stocks reeling on Tuesday after a hotter-than-expected inflation report dashed hopes that the Federal Reserve could relent and scale back its policy tightening in the coming months. All three major US stock indices veered sharply lower, snapping four-day winning streaks and notching their biggest one-day percentage drops since June 2020 in throes of the Covid-19 pandemic. The Dow Jones Industrial Average fell 1,276.37 points, or 3.94 percent, to 31,104.97, the S&P 500 lost 177.72 points, or 4.32 percent, to 3,932.69 and the Nasdaq Composite dropped 632.84 points, or 5.16 percent, to 11,633.57.

Asian shares tumbled, the dollar held firm and the US yield curve was deeply inverted on Wednesday, as a white-hot US inflation report dashed hopes for a peak in inflation and fuelled bets that interest rates may have to be raised higher and for longer. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.3 percent in early Asia trade on Wednesday. Resources-heavy Australia plunged 2.8 percent, while Japan's Nikkei tumbled 2.7 percent.

At 8:20 am, the SGX Nifty was trading 302 points or 1.7 percent lower at 17,790, indicating a gap down opening for the Indian markets.

The domestic market remained in positive territory for the fourth consecutive session on September 13 as positive global cues and the dollar's fall against its global peers underpinned sentiment. Sensex closed 456 points, or 0.76% higher at 60,571.08. Nifty50 reclaimed the psychologically important 18,000 mark and ended 134 points, or 0.75% higher at 18,070.05.

US consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare, giving the Federal Reserve ammunition to deliver a third 75 basis points interest rate hike next Wednesday. The consumer price index edged up 0.1 percent last month after being unchanged in July. Though consumers got some relief from a 10.6 percent decline in gasoline prices, they had to dig deeper to pay for food, rent, healthcare, electricity and natural gas. Food prices rose 0.8 percent, with the cost of food consumed at home increasing 0.7 percent. Food prices surged 11.4 percent over the last year, the largest 12-month increase since May 1979.

The coronavirus pandemic has shown India's institutions can rise to the occasion, Finance Minister Nirmala Sitharaman said on September 13, batting away suggestions that a fiscal council is needed. I find a very powerful case being made for a fiscal council (in this book), which is not new, Sitharaman said in the Capital.

Foreign institutional investors (FIIs) have net bought Indian equities worth ₹1,956.98 crore, whereas domestic institutional investors (DIIs) net sold shares worth ₹1,268.43 crore on September 13, as per provisional data available on the NSE.

Gold prices edged lower on Wednesday after hotter-than-expected US inflation data boosted the dollar and fuelled expectations that the Federal Reserve will continue on aggressive policy tightening path, reported news agency Reuters.

The rupee rose 38 paise to close at 79.15 per dollar in the previous session after the dollar weakened against its global peers. Gains in the equity market and buying by foreign portfolio investors (FPIs) also underpinned the domestic unit. FPIs bought Indian shares worth ₹1,956.98 crore on September 13, NSE data showed.