Indian shares are seen opening a tad higher on Wednesday as global markets steadied and demand for safe-haven assets waned after a knee-jerk reaction to the growing tension between Ukraine and Russia.
Benchmark indexes Sensex and the Nifty fell around 0.7 percent each on Tuesday to extend losses for the fifth straight session, while the rupee dropped 29 paise to close at 74.84 against the dollar, snapping its five-day winning streak.
Asian markets traded mixed in thin trade due to the Japan holiday and U.S. equity futures rose after Russia denied it intends to invade Ukraine.
The dollar index eased from a one-week high and oil prices took a breather while gold held flat on higher U.S. Treasury yields and expectations of interest-rate hikes.
U.S. stocks fell sharply overnight, as fears of a war in Europe deepened and President Joe Biden announced a wave of sanctions against Russia. Biden also said the U.S. would continue to supply ‘defensive’ weapons to Ukraine.
The Dow fell 1.4 percent to end at an eight-month low and the S&P 500 shed 1 percent to enter into correction territory while the tech-heavy Nasdaq Composite index declined 1.2 percent.
European stocks ended flat on Tuesday despite Russia-Ukraine jitters. After Russia moved quickly to secure its hold on Ukraine’s rebel regions, Germany halted the certification of the Nord Stream 2 gas pipeline and the U.K. slapped targeted economic sanctions.
The pan European Stoxx 600 ended flat with a positive bias. The German DAX slipped 0.3 percent and France’s CAC 40 index finished marginally lower while the U.K.’s FTSE 100 edged up 0.1 percent.
Market Analysis
Sensex, Nifty Seen Higher At Open
2022-02-23 02:53:06
