Indian shares look set to open a tad higher on Wednesday as investors gear up for the biggest Federal Reserve interest rate-hike since 2000.
Markets have already priced in a 50-bps rate hike later today, with additional 50-bps increases expected in June, July and September meetings.
The accompanying policy statement is eyed for clues about how aggressively the U.S. central bank plans to tighten monetary policy.
Investors would also react to the latest batch of earnings results, news flow around the LIC IPO and preliminary trade data for April. India’s trade deficit widened in April despite a 24.22 percent surge in merchandise exports.
Indian stock markets were closed on Tuesday for Ramzan Eid.
Asian stocks held steady this morning and gold edged lower amid an uptick in U.S. Treasury yields, while oil prices rose after having fallen more than 2 percent on Tuesday.
U.S. stocks finished slightly higher overnight after the release of positive data on factory orders and job openings.
The Dow and the tech-heavy Nasdaq Composite both inched up around 0.2 percent while the S&P 500 gained half a percent.
European stocks rebounded on Tuesday after suffering heavy losses in the previous session. The pan European Stoxx 600 rose half a percent, with German and Eurozone unemployment figures in focus.
The German DAX climbed 0.7 percent, France’s CAC 40 index added 0.8 percent and the U.K.’s FTSE 100 edged up 0.2 percent.
Market Analysis
Sensex, Nifty Seen Higher In Cautious Trade Ahead Of Fed Decision
2022-05-04 02:38:14
