Trade Setup for Friday 12 May: Stock Market Today

 

Trade setup for Friday 12 May 2023– Good morning and welcome to the morning reports, the top things to know before the stock market opens today.

Asian stock market indexes are trading mixed on Friday as the US Producer Price Index (PPI) data showed inflation was easing.  Nikkei is trading higher by 0.83 percent due to buying in healthcare and utility stocks. Hang Seng and Shanghai are also trading higher by 0.26 percent and 0.27 percent respectively, as Hong Kong will release its first GDP data later in the day. The Kospi index is down by 0.45 percent at 7.20 am IST

SGX Nifty is trading lower by 67 points or 0.37 percent at 18282 levels. The indication getting from the SGX Nifty is negative today. Indian stock markets are likely to open in the red and will trade sideways.

 

U.S. Stock Market Indexes update

 

The US stock market indexes closed mixed on Thursday. Dow Jones and S&P 500 ended lower, as Disney fell sharply and the ongoing regional banking crisis, while Nasdaq ended higher as Alphabet gained for the second consecutive day. The entertainment company Disney fell almost 8% after the company reported a decline in Disney+ subscribers even after upbeat quarterly results. 

The regional bank PacWest Bancorp closed 22% lower after the lender said the deposit fell around 10% last week, this fret the investors and selling pressure witnessed in the regional banking space. Meanwhile, Alphabet (Google) climbed for the second consecutive day and supported the markets, as investors showed buying interest after the announcement of the integration of AI with Google products.

On the economic front, the producer price index (PPI) for April rose 0.2%, slower than the 0.3% economists had expected. The weekly initial jobless claim rose by 22,000 to 264,000 for the week ended May 5, the highest since October 23. The key US stock market indexes, Dow Jones and S&P 500 fell 0.66 percent and 0.17 percent while tech-heavy Nasdaq ended higher by 0.18 percent on Thursday.

 

European Stock Market Indexes Updates

 

European stock market indexes closed mostly lower on Thursday, as the Bank of England (BoE) hiked interest rates by 25 bps to 4.5%, their highest levels since 2008. BoE monetary policy was in line with the expectations.

Meanwhile, investors worried about the financial health of the US regional bank, US bank PacWest.fell over 25% after the lender said deposits declined by almost 10% last week and was forced to pledge more assets to the Federal Reserve in return for increasing its borrowing capacity.

On a sectoral front, the Mining sector fell the most while the Household goods stocks ended higher. On the earnings front, Rolls-Royce fell as the company held annual guidance. Dutch bank ING gained after reporting a better-than-expected first-quarter profit.

German company Thyssenkrupp and Bayers fell after the company posted quarterly results. The share price of key Europen stock market indexes, FTSE and DAX closed lower by 0.14 percent and 0.39 percent respectively, while CAC closed higher by 0.28 percent respectively.

 

Indian stock market updates

 

Indian stock markets ended with minor cuts amid volatility on Thursday. The markets were volatile due to the weekly expiry of index options on the NSE. The upside remains capped due to weak global cues while the downside was limited as the FIIs buying spree continued in the Indian equity markets.

The market breadth was strong with the advance decline indicating a ratio of 2:1 at the close. FIIs bought shares worth Rs 837.21 crore while DIIs offloaded Rs 200.09 crore worth of shares on Thursday.

 

Q4 Results Today

 

Tata Motors, Cipla, Vedanta, Colgate-Palmolive, DLF, Hindustan Petroleum Corporation, Hindustan Aeronautics, Indraprastha Gas, Indian Overseas Bank, Laxmi Organic Industries, Manappuram Finance, Max Financial Services, APL Apollo Tubes, Butterfly Gandhimathi Appliances, Cholamandalam Financial Holdings, Ethos, Great Eastern Shipping Company, Greaves Cotton, Polycab India, Shree Renuka Sugars, Sapphire Foods India will announce their quarterly earnings on 12 May 2023

 

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Editor’s Desk