Dismal opening on the cards on weak global cues

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slump 318 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading with sharp losses 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.

US stocks fell sharply on Tuesday after a key August inflation report came in hotter than expected, hurting investor optimism for cooling prices and a less aggressive Federal Reserve. The report is one of the last the Fed will see ahead of their September 20-21 meeting, where the central bank is expected to deliver its third consecutive 0.75 percentage point interest rate hike to tamp down inflation.

The Dow Jones Industrial Average slid 1,276.37 points, or 3.94%, to close at 31,104.97. The S&P 500 dropped 4.32% to 3,932.69, and the Nasdaq Composite sank 5.16% to end the day at 11,633.57.

Meanwhile, the shareholders of social media giant Twitter on 13 September 2022 approved the $44 billion acquisition deal which was inked by the company with billionaire tycoon Elon Musk. The nod from shareholders comes ahead of the trial next month over whether the $44 billion deal should be completed. The courtroom battle is scheduled to begin on 17 October 2022.

On the macro front, US consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare. The consumer price index edged up 0.1 percent last month after being unchanged in July. In the 12 months through August, the CPI increased 8.3%. That was a deceleration from July's 8.5% rise and a 9.1% jump in June.

Domestic markets:

Back home, domestic equities cruised higher on Tuesday amid improving risk sentiments. Positive global cues, strong portfolio inflows and stable crude oil prices aided the upmove in domestic shares. The barometer index, the S&P BSE Sensex, rose 455.95 points or 0.76% to 60,571.08. The Nifty 50 index gained 133.70 points or 0.75% to 18,070.05.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,956.98 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,268.43 crore in the Indian equity market on 13 September, provisional data showed.

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