Indian shares may open a tad lower on Wednesday as global bond yields jumped after a sharp rise in U.S. inflation.
On the earnings front, Mindtree reported better-than-expected results for the first quarter while Tata Metaliks, a subsidiary of Tata Steel, posted turnaround results on higher sales and price realization.
After June retail inflation eased up on a sequential basis, investors now eye the WPI inflation data, due later in the day for further direction.
Meanwhile, S&P Global Ratings affirmed India’s sovereign rating at the lowest investment grade of ‘BBB-‘ for the 14th year in a row with a stable outlook.
Asian markets were mostly lower this morning and the dollar hit a three-month high against the euro on bets of faster monetary policy tightening in the U.S. Oil fell on demand concerns after rising sharply overnight.
U.S. stocks pulled back from record highs overnight and bond yields rose as new data showed consumer inflation rose at its fastest pace in nearly 13 years in June.
The consumer price index jumped an annual 5.4 percent, coming in well above expectations for a 5 percent increase and adding pressure on the Fed to tighten policy sooner than expected.
The Dow slipped 0.3 percent while the tech-heavy Nasdaq Composite and the S&P 500 both dropped around 0.4 percent.
European stocks ended little changed on Tuesday as strong earnings from top name U.S. banks JP Morgan Chase and Goldman Sachs, and encouraging Chinese trade data helped offset investor concerns about rising inflation.
The pan European Stoxx 600 ended flat with a positive bias. The German DAX, France’s CAC 40 index and the U.K.’s FTSE 100 all ended marginally lower.
Closer home, benchmark indexes Sensex and the Nifty jumped around 0.8 percent each on Tuesday on the back of positive global cues and domestic data showing a marginal fall in retail inflation.
The rupee strengthened for the third straight session, closing 9 paise higher at 74.49 (provisional).
Market Analysis
Sensex, Nifty Set For Cautious Start
2021-07-14 03:00:29
