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India’s Dec wholesale price inflation sequentially eases to 13.56%

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Lower prices of manufactured goods and fuel slightly eased India’s December 2021 wholesale inflation on a sequential basis. Accordingly, the annual rate of inflation, based on wholesale prices, rose to 13.56 per cent from 14.23 per cent reported for November 2021.

However, on a year-on-year (YoY) basis, the Wholesale Price Index (WPI) data furnished by the Ministry of Commerce and Industry has risen exponentially over December 2020, when it stood at 1.95 per cent.

“The high rate of inflation in December 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum and natural gas, chemicals and chemical products, food products, textile and paper and paper products etc as compared to the corresponding month of the previous year,” the ministry said in its review of ‘Index Numbers of Wholesale Price in India’ for December.

“The month over month change in WPI for the month of December, 2021 stood at (-) 0.35 per cent as compared to November, 2021.”

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FII inflows, Nvidia earnings, oil prices among key factors to drive stock market next week

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Indian stock markets are likely to remain volatile next week as investors track foreign institutional investor (FII) flows, crude oil price movements, Nvidia’s quarterly earnings and changing interest rate expectations.

After a spectacular rally that pushed the Sensex and Nifty higher for 10 consecutive sessions, benchmark indices witnessed some profit booking towards the end of last week. However, sustained foreign inflows and resilient corporate earnings helped markets retain their weekly gains.

The Sensex declined 319 points to close at 81,592 on Friday (November 13), while the Nifty slipped over 155 points to settle at 25,144, snapping a three-session winning streak.

The correction came amid renewed concerns over global AI-related trade, rising crude oil prices and expectations of tighter monetary policy following a sharper-than-expected increase in domestic inflation.

One of the biggest factors influencing market sentiment next week will be the continuation of FII buying. Foreign investors remained net buyers of Indian equities for the tenth consecutive session on Friday, purchasing shares worth Rs 5,736.55 crore, according to provisional NSE data.

Crude oil prices will also remain on investors’ radar as geopolitical developments in the Middle East continue to create uncertainty over global energy supplies.

While comments from US President Donald Trump suggesting that the Iran war was effectively over initially eased concerns and triggered a decline in oil prices, fresh attacks on Saudi energy infrastructure and disruptions to shipping through the Strait of Hormuz led to a rebound.

Brent crude is currently hovering near $96 per barrel. Any further rise in oil prices could weigh on India’s macroeconomic outlook, inflation and corporate margins, while a sustained decline may support market sentiment.

Global technology stocks will also be in focus as investors await Nvidia’s quarterly earnings announcement scheduled for Tuesday (November 17).

The chipmaker’s results and management commentary could influence sentiment around the global artificial intelligence trade.

Any sharp movement in AI-related stocks may have an impact on Indian equities, particularly technology shares, as investors assess the implications for global growth and the competitive positioning of Indian IT companies.

Meanwhile, rising inflation has brought interest rate expectations back into focus. India’s retail inflation accelerated to 6.09 per cent in October from 5.54 per cent in September, breaching the Reserve Bank of India’s upper tolerance limit of 6 per cent.

The latest reading has strengthened concerns about the possibility of monetary tightening, with several economists anticipating a potential rate hike at the RBI’s December policy meeting. Market participants will closely assess the implications of higher inflation for borrowing costs, liquidity and economic growth.

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Business

FII inflows, Nvidia earnings, oil prices among key factors to drive stock market next week

Published

on

Indian stock markets are likely to remain volatile next week as investors track foreign institutional investor (FII) flows, crude oil price movements, Nvidia’s quarterly earnings and changing interest rate expectations.

After a spectacular rally that pushed the Sensex and Nifty higher for 10 consecutive sessions, benchmark indices witnessed some profit booking towards the end of last week. However, sustained foreign inflows and resilient corporate earnings helped markets retain their weekly gains.

The Sensex declined 319 points to close at 81,592 on Friday (November 13), while the Nifty slipped over 155 points to settle at 25,144, snapping a three-session winning streak.

The correction came amid renewed concerns over global AI-related trade, rising crude oil prices and expectations of tighter monetary policy following a sharper-than-expected increase in domestic inflation.

One of the biggest factors influencing market sentiment next week will be the continuation of FII buying. Foreign investors remained net buyers of Indian equities for the tenth consecutive session on Friday, purchasing shares worth Rs 5,736.55 crore, according to provisional NSE data.

Crude oil prices will also remain on investors’ radar as geopolitical developments in the Middle East continue to create uncertainty over global energy supplies.

While comments from US President Donald Trump suggesting that the Iran war was effectively over initially eased concerns and triggered a decline in oil prices, fresh attacks on Saudi energy infrastructure and disruptions to shipping through the Strait of Hormuz led to a rebound.

Brent crude is currently hovering near $96 per barrel. Any further rise in oil prices could weigh on India’s macroeconomic outlook, inflation and corporate margins, while a sustained decline may support market sentiment.

Global technology stocks will also be in focus as investors await Nvidia’s quarterly earnings announcement scheduled for Tuesday (November 17).

The chipmaker’s results and management commentary could influence sentiment around the global artificial intelligence trade.

Any sharp movement in AI-related stocks may have an impact on Indian equities, particularly technology shares, as investors assess the implications for global growth and the competitive positioning of Indian IT companies.

Meanwhile, rising inflation has brought interest rate expectations back into focus. India’s retail inflation accelerated to 6.09 per cent in October from 5.54 per cent in September, breaching the Reserve Bank of India’s upper tolerance limit of 6 per cent.

The latest reading has strengthened concerns about the possibility of monetary tightening, with several economists anticipating a potential rate hike at the RBI’s December policy meeting. Market participants will closely assess the implications of higher inflation for borrowing costs, liquidity and economic growth.

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US flight disruption: Air India advises passengers to check latest status

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New Delhi : Air India on Saturday advised passengers to check the latest status of their flights and plan their journey to the airport accordingly, amid massive disruption at the US airports. The Federal Aviation Administration (FAA) lifted a nationwide ground stop that had halted departures at US airports after a communications failure, though airlines warned that disruption and cancellations could continue.

“A nationwide ground stop is currently in effect across the US due to communication outages affecting air traffic operations. As a result, departures from airports across US are impacted, with possible consequential disruptions to Air India flights to and from the US,” Air India said in a statement posted on X. “Our teams continue to closely monitor the situation and will share updates as available,” it added. The cancellation of US flights happened after a communications problem affected air traffic operations. The notice announcing the cancellation did not specify the cause of the failure or say that airline schedules had returned to normal.

Earlier, the FAA’s Air Traffic Control System Command Center said the ground stop remained in effect across a large portion of the country, although some coastal facilities had been able to release international departures. In an update, American Airlines said some flights from certain airports were beginning to receive clearance to depart. At that point, most departures remained paused, and the airline expected further disruption, including unavoidable cancellations. American advised customers to check their flight status and review its travel alert for options. Its warning was issued before the FAA’s cancellation advisory. Homeland Security Secretary Markwayne Mullin told reporters earlier that officials had acted as a precaution following a telecommunications outage affecting the FAA. “There is no indication as of yet that this was a nefarious attack,” he said at the time. That preliminary assessment did not rule out a cyberattack.

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