Indian shares look set to open flat to slightly lower on Tuesday despite Axis Bank’s upbeat Q3 earnings results, Wall Street’s dramatic rebound overnight and a nearly 2 percent fall in oil prices amid Fed rate hike talk.
A cautious undertone may prevail as the Federal Reserve begins a two-day meeting later in the day, with the latest monetary policy decision due Wednesday afternoon.
While the Fed is likely to leave interest rates unchanged, the accompanying statement could hint at the first rate hike as early as the next meeting in mid-March.
Benchmark indexes Sensex and the Nifty tumbled 2.6 percent and 2.7 percent, respectively on Monday, marking their worst drop in two months and extending losses for the fifth straight session.
The rupee slumped 17 paise to close at a more than three-week low of 74.60 against the greenback.
Asian markets fell broadly this morning and U.S. stock futures declined amid concerns over Federal Reserve policy tightening and a possible Russian attack on Ukraine.
Treasuries were mixed and the dollar held near a two-week high while gold prices were little changed. Oil prices traded mixed in Asian trade after falling about 2 percent in the U.S. session overnight.
U.S. stocks recovered from an early sell-off to end modestly higher overnight as the recent pullback in risk assets appeared overdone.
The Dow dropped over 1,000 points at its worst to reach its lowest level in more than nine months before ending the day 0.3 percent higher.
The Nasdaq Composite plunged as much as 4.9 percent to hit multi-month lows before closing 0.6 percent higher while the S&P 500 edged up 0.3 percent.
European stocks ended deep in the red on Monday, with tech stocks falling the most as investors braced for hawkish Fed update.
The pan European Stoxx 600 plummeted 3.8 percent. The German DAX plunged 3.8 percent, France’s CAC 40 index slumped 4 percent and the U.K.’s FTSE lost 2.6 percent.
Market Analysis
Sensex, Nifty Seen Opening On Cautious Note
2022-01-25 02:59:13
