Stock market today: Key things to know before the opening bell on January 16

Stock market today:Indian markets are expected to open positively, taking cues from buoyant global markets. The global markets rejoiced with softer CPI print for December in the US, and the ceasefire between Israel and Gaza after 15 months of war also cooled down the geo-political risks for the markets.

US markets

The US markets posted a strong rally on Wednesday after a soft December inflation print raised hopes for market participants. The December CPI stood a tad lower at 3.2% compared to 3.3% in November, which boosted investor sentiments. In addition, the earnings of major banks like J.P. Morgan, Citi, and Goldman Sachs came in strongly above market estimates, further boosting investor sentiment. The NASDAQ closed 2.4% higher, followed by the S&P 500 at 1.8% and the Dow Jones at 1.65% on Wednesday.

Asian markets

In Asia, positive investor sentiment gripped all the key indices in Hong Kong, and Korea jumped more than 2%. On the other hand, the Japanese indices traded marginally higher as the Japanese yen hit a four-month high against the US Dollar.

USD and Treasury yeilds

Following the softer CPI print, the Dollar index cooled below 109, and the US 10Y also fell below 4.65, down over 3% after hitting 10-month high levels at 4.8%. The softer inflation print brings hopes dovish momentum in the monetary policy to continue.

Crude Oil

Crude oil prices hit a five-month high on Wednesday as US crude oil inventories dropped by 1.961 million barrels. WTI crude oil prices jumped over 3% and traded above $80 per barrel, and Brent crude oil prices traded nearly at $82 per barrel.

FII and DII data

The FII cooled down on their short positions in the derivatives market as the total short contracts on the short side held by FIIs stood at 2.90 lakhs on Wednesday, down from 2.95 lakhs. On the other hand, they continue to sell Indian equities in the secondary markets faster, selling another ₹4,500 crore worth of Indian equities on Wednesday. On the other hand, the DIIs mopped up Indian equities worth ₹3,632 crore on Wednesday.