Indian shares may open lower on Wednesday, with inflation concerns, heightened tensions between the U.S. and China, and worries about China’s property sector likely to remain on investors’ radar ahead of the monthly F&O expiry, due on Thursday.
Benchmark indexes Sensex and the Nifty ended up 0.6 percent and 0.8 percent, respectively on Tuesday after a volatile trade. The rupee recovered by 12 paise to close at 74.96 against the dollar.
Asian markets were broadly lower this morning after Washington revoked the U.S. licence of one of China’s biggest telecoms companies citing “national security” concerns. A jump in Australian core inflation also highlighted intensifying price pressures in the global economy.
Gold eased on the back of a firmer dollar and elevated bond yields while oil prices fell after industry data showed crude oil stockpiles rose more than expected and fuel inventories unexpectedly increased last week.
U.S. stocks eked out modest gains overnight, as solid corporate earnings as well as encouraging new home sales and consumer confidence data helped offset lingering concerns about growth and inflation.
The Dow ended marginally higher and the S&P 500 inched up 0.2 percent to reach new record closing highs while the tech-heavy Nasdaq Composite ended flat with a positive bias.
European stocks advanced on Tuesday after strong earnings from the likes of UBS and Reckitt Benckiser.
The pan European Stoxx 600 gained 0.8 percent. The German DAX rallied 1 percent, while France’s CAC 40 index and the U.K.’s FTSE 100 both climbed around 0.8 percent.
Market Analysis
Sensex, Nifty Set To Follow Asian Peers Lower
2021-10-27 02:48:30
