Factors Affecting The Indian Stock Market Today. Here’s an Overview

The Indian benchmark indices make a weak start in today’s trading session. Nifty is currently trading at 24,269.40, down 1.14%, while Sensex slipped by 1.13% at 80,370.62.

While US producer prices surged above the expected lines in November, claims for unemployment benefits shot up last week.

Previously, Sensex closed 0.29% lower at 81,289.96, while Nifty was down by 0.38% to close at 24,548.70.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said, “Investors traded with caution ahead of the announcement of inflation and IIP data and steadily cut their equity bets. There is lack of confidence amongst investors due to global uncertainty, rising US bond yields fuelling fund outflows, and persisting conflicts in the Middle East and West Asia.”

Here's a glimpse of global factors that have factored in today's trading session.

Asian Markets

Buoyed by overnight losses on Wall Street, Asian markets remained weak on Friday. Japan’s Nikkei 225 slipped 0.71%, while Topix and South Korea’s Kospi were down by 0.85% and 0.22% respectively.

Gift Nifty

Gift Nifty was trading lower by 103 points at 24,545 level from Nifty Futures’ previous day’s close.

US Stock Market

Fueled by poor economic data, the US stock market ended on a poor note. While the Dow Jones Industrial Average was down by 0.53% at 43,914.12, S&P 500 dropped 32.94 points to close at 6,051.25. The Nasdaq Composite slipped at 19,902.84. Among the laggards, shares of Nvidia, Adobe and Nordson dropped by 1.4%, 13.7% and 8.2% respectively, while Discover jumped by 15.4%.

US Producer Prices

The producer price index (PPI) shot up 0.4% as compared to 0.3% in October.

US Jobless Claims

For the week ended December 7, claims for unemployment benefits surged by 17,000 to 242,000.

Inflation Numbers in India

The consumer price index (CPI) cooled to 5.48% in November from October’s high of 6.2%. Industrial production (IIP) surged by 3.5% in October on a year-on-year (YoY) basis.