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Market Review

US:US stocks notched gains across the board on Tuesday after key inflation data came in hotter than expected to help set expectations for the timing of a Fed Reserve interest-rate cut.

Asia: Most Asian stocks rose slightly on Wednesday as major technology shares tracked a rally in their Wall Street peers, although overall gains were limited as hot U.S. inflation factored into a higher-for-longer outlook for interest rates.

India: Frontline line equity indices bucked the trend in the broader market, and finished in the positive territory on Tuesday led by gains in index heavyweights - HDFC Bank, TCS and Reliance Industries. Market is expected to open on a flattish note and likely to witness sideways move during the day

Global Economy: Headline U.S. consumer price growth accelerated in Feb, while the underlying measure was faster than anticipated, in a sign of sticky inflationary pressures that could complicate the timing of potential Fed Reserve interest rate cuts this year. The annualized reading of the closelywatched CPI increased by 3.2% last month, quicker than estimates that it would remain at a pace of 3.1% notched in Jan. The British public's expectations for inflation over the next year and also the longer term fell in Feb, U.S. bank Citi said. Citi said public expectations for inflation in 12 months' time fell to 3.6% in February from 3.9% in January, while expectations for the five to 10 year period fell to 3.5% from 3.6%. IIP output in January grew at a weaker-than-expected rate of 3.8% year-on-year on the back of slowdown in manufacturing and mining activity.

Commodities: Gold prices steadied on Wednesday, after posting its biggest decline in a month in the previous session after a sticky U.S. inflation report boosted bond yields and slightly tempered hopes for a June interest rate cut from the Fed Reserve. Oil prices rose on Wednesday on expectations of strong global demand, including in the world's top consumer the United States, and as even somewhat sticky US inflation did not dent expectations the Fed might start cutting rates soon.

Currency: The US dollar held steady against a handful of rival currencies on Wednesday, as traders weighed what impact hotter-than-expected inflation data could have on chances of an interest rate cut at the Fed Reserve's June meeting.

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