Stock market today: Softer inflation data, sharp fall in crude oil prices among key triggers for market today

The market is expected to continue the momentum on Thursday amid mixed global and domestic factors.

The GIFT NIFTY traded 46 points higher at 7:15 am, indicating a positive start for the Indian markets. Markets are expected to react to the softer headline inflation print for January at 4.3%, sharply lower than the 5.3% in December.

US markets

The US markets closed largely in the red after hotter inflation data for January. The US CPI stood at 3% compared to the street estimates of 2.9%. The higher inflation soured market sentiments, as hopes for more rate cuts this year faded.

The Dow Jones and S&P 500 closed in the red with up to 0.5% losses, and the NASDAQ closed in the green with little gain.

Asian markets

The Asian markets traded in positive territory on Thursday morning. All major indices of Japan, Hong Kong, and South Korea gained more than 1% in early trade. The Japanese Nikkei index gained over 1% as a strong earnings season lifted investors' sentiments.

The Korean indices jumped in anticipation of exemption from the US tariffs for Korean car makers like KIA and Hyundai Motors.

Crude Oil

Crude oil prices fell more than 2.5% on Wednesday as geopolitical tensions stand to ease out after a call between the President of Russia, Vladimir Putin, and US President Donald Trump.

Both leaders agreed to end the war in Ukraine with fresh rounds of negotiations. On Thursday morning, WTI crude oil prices traded below $71 per barrel, and Brent crude oil prices traded below $75 per barrel.

FII and DII data

The FIIs continued to sell Indian equities at an accelerated pace on Wednesday as they sold Indian equities worth ₹4,969 crore, and the DIIs bought equities worth ₹5,969 crore. In the derivatives segment, the FIIs added shorts on Wednesday, making their total short position 1.84 lakh contracts.

Chart Check

Almost all the benchmark and broader indices made a hammer pattern on Wednesday after giving a sharp pullback from lower levels.

The NIFTY50 and SENSEX took support at the previous low levels as highlighted yesterday. Market participants expect a positive close on Thursday amid multiple positive factors giving some respite amidst the sharp correction.