Stocks poised for negative opening

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 51 points at the opening bell.

Global markets:

Overseas, Asian stocks mostly slipped on Wednesday following a hotter-than-expected U.S. inflation report for June overnight.

Singapore's economy grew 14.3% year-on-year in the second quarter, official advanced estimates showed Wednesday. Still, the economy contracted by 2% as compared with the previous quarter, Singapore's Ministry of Trade and Industry said.

US stocks slipped after posting new highs on Tuesday as the biggest hike in U.S. inflation in 13 years rattled investors.

Inflation rose at its fastest pace in nearly 13 years, the Labor Department reported Tuesday. The consumer price index increased 5.4% in June from a year ago. Core CPI, excluding food and energy, jumped 4.5%, the sharpest move for that measure since September 1991.

Federal Reserve Chairman Jerome Powell is scheduled to appear in front of Congress Wednesday and Thursday to provide an update on monetary policy.

Investors are also monitoring the spread of the more contagious delta variant of Covid-19, which is hampering the recovery from the pandemic in some parts of the world. The unfolding earnings season is key too, with global stocks close to record highs on optimism over the bounce back from the health crisis.

Domestic markets:

Back home, the key equity indices ended with strong gains on Tuesday, tracking positive cues from other Asian stock markets. The barometer index, the S&P BSE Sensex, advanced 397.04 points or 0.76% to 52,769.73. The Nifty 50 index added 119.75 points or 0.76% to 15,812.35.

Foreign portfolio investors (FPIs) bought shares worth Rs 113.83 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 344.19 crore in the Indian equity market on 13 July, provisional data showed.

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