Indian shares look set to open on a flat note Tuesday as investors keep a wary eye on oil price movements, climbing U.S. Treasury yields, the Russia-Ukraine conflict and the Covid-19 situation in China.
Meanwhile, RBI Governor Shaktikanta Das has rejected concerns about the central bank being crippled if the country faced sanctions similar to Russia in the future.
“Our reserves are quite well dispersed. And I don’t foresee a situation whereby India will ever face a sanction situation,” he said.
Benchmark indexes Sensex and the Nifty fell around 1 percent each on Monday while the rupee slumped by 34 paise to close at 76.18 against the greenback.
Asian markets were mostly higher this morning, the Japanese yen fell through the key 120 level against the dollar for the first times since 2016 and Treasuries extended losses, while Brent crude prices topped $118 a barrel after Kremlin spokesman Dmitry Peskov said no agreements were reached in Ukraine negotiations.
U.S. stocks fell overnight after Fed Chair Jerome Powell signaled openness to raising interest rates aggressively this year to tame inflation, leading to speculation of a potential 50 bps move at any of the upcoming meetings.
The Dow shed 0.6 percent and the tech-heavy Nasdaq Composite dropped 0.4 percent while the S&P 500 edged down marginally.
European stocks ended Monday’s session on a mixed note, as higher oil prices as well as reports about Omicron BA.2 fueling a massive Covid surge in parts of Europe and Asia prompted traders to cash in on last week’s gains.
The pan European Stoxx 600 closed flat with a positive bias. The German DAX and France’s CAC 40 index both fell around 0.6 percent while the U.K.’s FTSE 100 gained half a percent.
Sensex, Nifty Set For Cautious Start As Oil Prices Surge
2022-03-22 03:08:29
