Stock Market News: Sensex, Nifty To Open Lower Following Rising US Inflation

The Indian stock market ended on a positive note on February 13, 2024. At close, Sensex was up 432 points at 71,505.16 while Nifty added 127 points and ended the session at 21,743.25.

Around 1213 stocks advanced and 1340 declined while 97 stocks remained unchanged.

Among sectors, except metal which shed 2 percent, all other indices ended in the green with bank, healthcare, Information technology, and capital goods up 0.4-1.5 percent each.

GIFT Nifty

GIFT Nifty indicates a negative start for Indian indices following US inflation data.

US inflation rises

US consumer prices rose more than expected in January amid a surge in the cost of rental housing, but the pick-up in inflation did not change expectations the Federal Reserve will start cutting interest rates in the first half of this year.

The consumer price index (CPI) increased 0.3% last month after gaining 0.2% in December, the Labor Department’s Bureau of Labor Statistics said. Shelter, which includes rents, accounted for more than two-thirds of the rise in the CPI.

Food prices rose 0.4%, the most in a year, which was partly blamed on winter storms. Grocery food inflation also increased 0.4%, the largest gain since January 2023, boosted by more expensive sugar and sweets as well as fats and oils, fruits and vegetables, according to a Reuters report.

US Markets

Global stock market indexes dropped, the 10-year US Treasury yield hit a 2-1/2-month high and the dollar touched a three-month peak against the yen on Tuesday after data showed US inflation slowed less than expected in January.

The Dow Jones Industrial Average fell 524.63 points, or 1.35%, to 38,272.75, the S&P 500 lost 68.67 points, or 1.37%, to 4,953.17 and the Nasdaq Composite lost 286.95 points, or 1.80%, to 15,655.60, Reuters reported.

Asian Markets

Asia-Pacific markets tracked Wall Street losses after US January inflation came in hotter than expected, with the consumer price index climbing 3.1% on a 12-month basis and 0.3% for the month.

Hong Kong’s Hang Seng index led losses in Asia, plunging 1.7% at the open as the city returns to trade after the Lunar New Year holiday. Japan’s Nikkei 225 retreated from 34-year highs, falling 0.78%, while the Topix saw a larger loss of 1.21%. The Nikkei had rallied about 3% to breach the 38,000 mark briefly on Tuesday, CNBC reported.

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Results today

Mahindra & Mahindra, Aditya Birla Fashion and Retail, Crompton Greaves Consumer Electricals, Dishman Carbogen Amcis, Gland Pharma, Glenmark Pharmaceuticals, Gujarat State Petronet, Indiabulls Housing Finance, Ipca Laboratories, Muthoot Finance, Natco Pharma, Narayana Hrudayalaya, NMDC, Sun TV Network, and Wockhardt.

Stocks in the news

• Tata Motors: The auto major announced a price cut of up to Rs 1.2 lakh on various electric vehicle (EV) models as the company intends to pass on the benefits of reductions in battery prices to the customers.
• Wipro: The IT firm has invested $66 million in the US-based Aggne Global Inc. to strengthen its consulting and services capabilities in the insurance sector. Now the company will be acquiring a 60 percent stake in Aggne and has kept the option to purchase the remaining stake over a while. The transaction is expected to be completed by February 14, 2024.
• Bharat Electronics: The company has signed a contract worth Rs 2,167.47 crore with the Indian Navy for the supply of indigenously designed and developed electronic warfare (EW) suites for use on-board warships.
• Infosys: The IT major announced a collaboration with Pacific International Lines (PIL) to accelerate PIL’s digital transformation initiative. The collaboration aims to create a positive impact for key stakeholders in the shipping and logistics ecosystem.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 376.32 crore, while domestic institutional investors (DIIs) purchased Rs 273.94 crore worth of stocks on February 13.

Bulk Deals

• Prudent Corp Adv Ser Ltd: TA FDI Investors Limited sold 33,12,534 shares at Rs 1250.04. On the other hand, Zulia Investments PTE. Limited bought 32,51,932 shares at Rs 1250
• Antony Waste Holding Cell Ltd: Ark Global Emerging Companies LP bought 2,03,600 shares at Rs 526.73
• Tijaria Polypipes Ltd: Bank Of India sold 3,00,000 shares at Rs 6
• Kalyani: Next Orbit Ventures Fund sold 37,000 shares at Rs 490.41

Stocks under F&O ban on NSE

The NSE has added National Aluminium Company to the F&O ban list for February 14.

Disclaimer: The content of this blog post is intended solely for informational purposes and should not be interpreted as investment or trading advice. The author does not assure the accuracy or completeness of the information presented. Any decisions or actions taken based on the content of this blog post are undertaken at your own risk.