Indian indices are likely to open on a negative note on Friday snapping three sessions of gains amid weakness across global peers as US inflation fuelled fears of aggressive rate hikes.
At 8:30 am, the SGX Nifty was trading 54 points or 0.3 percent lower at 17,431, indicating a negative start for the Indian markets.
Indian indices rose for a third straight day on Thursday around a percent lifted by financials after the Reserve Bank of India maintains the status quo on interest rates in its final monetary policy of FY22. The BSE Sensex index rose 460.1 points to 58,926 while the Nifty50 gained 142.1 points to 17,605.90.
Let's take a look at some key market cues before the market opens today:
US Markets
Wall Street fell sharply on Thursday after worse-than-expected US inflation data stokes fears of aggressive rate hikes by the Fed. US CPI up 7.5 percent in January, much above estimates. Dow Jones Industrial Average ended 1.5 percent lower while S&P 500 was down 1.8 percent and Nasdaq Composite 2.1 percent.
Asian Markets
Equities in other Asian markets fell on Friday after a steep fall in Wall Street indices and a jump in US Treasury yields overnight. Red-hot US inflation data and hawkish comments from a Federal Reserve official trigger worries about a faster-than-expected tightening of policy. MSCI's broadest index of Asia Pacific shares outside Japan down 0.6 percent.
Oil
Oil prices eased early on Friday as hot US inflation fanned worries about aggressive interest rate hikes and as investors await the outcome of U.S.-Iran talks that could lead to increased global crude supply. Brent crude futures fell 40 cents to $91.01 a barrel while U.S. West Texas Intermediate crude declined 25 cents to $89.63 a barrel.
SGX Nifty
At 8:30 am, the SGX Nifty was trading 54 points or 0.3 percent lower at 17,431, indicating a negative start for the Indian markets.
Rupee
Declining for the third day in a row, the rupee slid by 10 paise to close at 74.94 against the US currency on Thursday after the Reserve Bank of India kept key policy rates unchanged and said it will continue with the accommodative stance.
Gold
Gold prices were stuck in a tight range on Thursday as investors cautiously awaited the US inflation data that could offer fresh clues about the pace of the Federal Reserve's monetary policy tightening.
Earnings today
Firms like ONGC, Ashok Leyland, Divi's Labs, Oil India, Motherson Sumi, etc. are likely to report their December quarter earnings during the day.
RBI Policy review
The Monetary Policy Committee (MPC) maintained status quo on the interest rates in the last policy review of FY22. The repo rate was maintained at 4 percent for the 10th consecutive time and the reverse repo remained unchanged at 3.35 percent.
US Inflation
Inflation soared over the past year at its highest rate in four decades, hammering American consumers, wiping out pay raises and reinforcing the Federal Reserve's decision to begin raising borrowing rates across the economy. The Labor Department said Thursday that consumer prices jumped 7.5per cent last month compared with a year earlier, the steepest year-over-year increase since February 1982.