SGX Nifty hits 18,800: US CPI inflation, Asian markets, Fed rate decision, dollar movement, FPI flows & more

Domestic stocks are likely to see a strong start to Wednesday's trade after US November inflation print came in lower than expectations, raising hopes the US Fed would moderate rate hikes going ahead. Asian markets were trading higher in early trade while dollar was trading lower. All eyes would be on the US Fed's policy outcome later today. Here's what you should know before the Opening Bell: 

Nifty outlook

For Wednesday's session, 18,650 is the level to watch out for, said Sameet Chavan of Angel One. Once Nifty surpasses the level, the bulls would become stronger and one can expect the rally to unfold towards the next milestone of 19,000. As far as support level is concerned, 18,500 is to be considered as an intraday level, Chavan said.
 
SGX Nifty signals a firm start 

Nifty futures on the Singapore Exchange quoted 99.5 points, or 0.53 per cent, higher to 18,800.50, hinting at a strong start for the domestic market on Wednesday.

Asian markets rise in early trade

Asia shares rose, tracking gains on Wall Street higher after US inflation cooled ahead of the Federal Reserve’s policy decision on Wednesday. Japan's Nikkei rose 0.75 per cent; Korea's Kospi was up 0.89 per cent while Hong Kong's Hang Seng rose 0.59 per cent. China's Shanghai Composite was up 0.08 per cent.

US stocks settle higher

Wall Street stocks gained on Tuesday, while Treasury yields fell and the dollar weakened, as new US government data showed the smallest annual increase in inflation in nearly a year. Dow Jones Industrial Average rose about 0.3 per cent, the S&P500 index gained 0.74 per cent and the Nasdaq Composite added 1 per cent.

US inflation slows in November

The US consumer price index increased 0.1 per cent in November after advancing 0.4 per cent in October, the Labor Department said. Economists polled by Reuters had forecast the CPI gaining 0.3 per cent. The slowdown could give the Federal Reserve cover to start scaling back the size of its interest rate increases on Wednesday, Reuters reported.

Dollar weak, focus switches to Fed

The U.S. dollar struggled to gain foothold on Wednesday after a sharp dive overnight on cooler-than-expected inflation data which fuelled expectations that the Federal Reserve will chart a moderate rate hike path later in the day. After delivering four consecutive 75 basis points hikes, the U.S. central bank is widely expected to increase interest rates by 50 basis points as it concludes its two-day meeting on Wednesday.    

Stocks in F&O ban

Shares of Delta Corp, BHEL and GNFC are banned in the F&O segment today. Derivative contracts in a security are banned when it crosses 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges. 

FPIs buy shares worth Rs 620 crore

Provisional data available with NSE suggests FPIs were net buyers of domestic stocks to the tune of Rs 619.92 crore on Tuesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 36.75 crore.

Rupee settles at 82.80 against dollar

The Indian rupee slipped against the dollar on Tuesday, mirroring the fall in Asian currencies ahead of the U.S. inflation report, while importer-led demand for the greenback weighed. The partially convertible rupee ended at 82.8050 per dollar, against its previous close of 82.53.