Trade setup for Thursday 12 Jan 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 mostly trading higher on Thursday, tracking gains from Wall Street overnight. Nikkei is trading marginally lower by 0.13 percent while Hang Seng and Shanghai are trading higher by 0.79 percent and 0.20 percent respectively. SGX Nifty is also trading higher by 49 points or 0.27 percent at 17999 levels.
The indication getting from the Asian and U.S. markets is positive. Indian stock market indexes are likely to open higher but would remain volatile today.
U.S. and European stock market indexes update
U.S. stock market indexes closed higher on Wednesday as investors were optimistic ahead of the December inflation reading. A Reuters poll showed that the December consumer price grew 6.5% YoY moderating from 7.1% in November. The market sentiment got boosted as the decline in inflation could lead to a more-muted interest rate hike in the upcoming Fed meeting.
Among the sectors, real estate, and consumer discretionary rallied the most on Wednesday. The key U.S. stock market indexes, Dow Jones and S&P 500 gained 0.80 percent and 1.28 percent respectively while Nasdaq jumped 1.76 percent on Wednesday.
European stock market indexes ended higher on Wednesday, as investors geared up for more inflation data this week, U.S. CPI inflation for December is due on Thursday. The markets closed higher on the back of a rally in the retail counter followed by financial services and chemicals.
The Pan-European’s Stoxx 600 advanced 0.4 percent, regaining most of the losses registered on Tuesday. The key European indexes, FTSE and CAC gained 0.40 percent and 0.80 percent respectively. Germany’s DAX index jumped 1.2% to its highest level since February due to growing optimism about its production and growth prospects for the year.
Indian stock market updates
Indian stock markets closed almost flat on Wednesday amid volatility. Traders were cautious ahead of the domestic and the U.S. inflation reading for the month of December, which is due on Thursday. The market breadth was quite positive with the advanced decline indicating a ratio of 5:4 at the close.
Foreign Institutional Investors (FIIs) being the net seller, they offloaded Rs 3208.15 crore worth of shares while Domestic Institutional investors (DIIs) bought Rs 2430.62 crore on Wednesday
Q3 Results Today
Infosys, HCL Technologies, Anand Rathi Wealth, Cyient, Den Networks, G G Engineering, GM Breweries, GTPL Hathway, and Plastiblends India will announce their Q3 results on January 12.
News you should read before the trade setup for today 12 Jan
On Wednesday, according to the finance ministry report, the government’s direct tax collections, net of refunds reached 86.7% of the 2022-23 budget target by January 10. The government’s gross direct tax collections stood at Rs 14.71 lakh crore during the period of April 2022- January 10, 2023.
After doing net refunds, which amount to Rs 2.4 lakh crore, the number is Rs 12.31 lakh crore, 19.6 percent higher than the same period of the previous financial year 2021-22. During the budget the government had estimated it would collect Rs 14.2 lakh crore as direct taxes in 2022-23—Rs 7.2 lakh crore in corporate tax and Rs 7 lakh crore in personal income tax.
The foreign brokerage house UBS says, the Union Budget 2023 is likely to focus more on rural India and the infra sector. As the government is heading for the general election in 2024, so this year’s budget will be the full budget and next year government may present an interim budget ahead of the national poll.
On Wednesday, India economist of UBS, Tanvee Gupta Jain said “The upcoming budget may boost Rural, Agri spending by US $10 billion — a growth of 15 percent over FY23 and maintain double-digit 20 percent growth in public Capex over the current fiscal, given that the nation will be going to the polls in mid-2024.”
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