Get ready for global turbulence, Uday Kotak says. Here’s why

On Wednesday, US consumer inflation numbers reported growth according to government data dashing hopes of an early interest rate cut by the Federal Reserve. This comes ahead of a crucial presidential election scheduled in the US later this year. The annual consumer price index (CPI) came in at 3.5% in March, up by 0.3% over the February print. It was slightly above Street's expectations of 3.4%.

The data raised the likelihood that the first Fed rate cut will come right before November's presidential vote, which would thrust the independent US central bank into the middle of a fractious fight between President Joe Biden and his likely opponent, former president Donald Trump, an An AFP report said.

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Following the development, headline indices on Wall Street crashed while the dollar index shot-up above the 105 mark. Dow 30 ended Wednesday at 38,461.50, down by 422.16 points or 1.09%. Meanwhile, the S&P 500 and Nasdaq Composite settled at 5,160.64 and 16,170.40, respectively. While the former declined by 49.27 points or 0.95%, the latter plunged by 136.28 or 0.84%.

Tracking Wall Street, most major benchmark Asian indices traded in the red on Thursday. Japan's Nikkei 225, Hong Kong's Hang Seng index and Singapore's FTSE Straits Times index had fallen by 0.42%, 0.29% and 0.30%, respectively around 11:45 India time. China's Shanghai Composite index was the only outlier and traded up by 0.42% around this time.

Indian stock exchanges NSE and BSE will remain closed for trading today on account of Eid-Ul-Fitr (Ramzan Id). Meanwhile, the country's largest commodity market, the (MCX), will see no trading in the morning session between 9 am and 5 pm but will resume trading in the evening session between 5 pm and 11:30/11:55 pm.

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