Sensex, Nifty Poised For Flat Start With Earnings In Focus

Trading in Singapore Nifty futures indicate a flat start. Local markets are now in a consolidation phase after a record nine-day winning run to April 13. IT stocks would continue to remain in focus ahead of HCL Tech’s Q4FY23 numbers due later in the day.

Benchmark indexes Sensex and Nifty fell slightly on Wednesday to extend losses for a third consecutive session while the rupee closed at a more than two-week low as the dollar rebounded on firmer U.S. Treasury yields.

Asian stocks were subdued this morning and U.S. stock futures declined as investors react to a mixed bag of earnings results from U.S. companies.

Tesla missed profit estimates in the first quarter of 2023 while IBM’s earnings topped estimates.

Expectations of more interest-rate hikes pushed up the U.S. dollar and yields, weighing on sentiment.

Federal Reserve Bank of New York President John Williams said Wednesday that inflation is still at problematic levels and the U.S. central bank will act to lower it. Traders expect a 25-bps rate hike from the Fed next month.

The Federal Reserve said in its monthly Beige Book survey that the U.S economy was “little changed” in recent weeks, with hiring and inflation slowing and access to credit narrowing.

Gold traded below $2,000 per ounce in Asian trading while oil extended losses, after having fallen about 2 percent to a two-week low on Wednesday amid demand worries.

U.S. stocks ended flat for the second straight session overnight following mixed corporate earnings from top companies including Netflix, Travelers and Morgan Stanley.

Traders also reacted to rising Treasury yields and the Fed’s Beige Book survey results showing that economic activity was little changed in recent weeks.

The tech-heavy Nasdaq Composite edged up marginally while the S&P 500 ended flat with a negative bias and the Dow eased 0.2 percent.

European stocks also ended mixed on Wednesday as investors digested U.K. inflation data and hawkish comments from Federal Reserve officials on the trajectory of interest rates hikes.

The pan European STOXX 600 slipped 0.1 percent. The German DAX edged up marginally and France’s CAC 40 added 0.2 percent while the U.K.’s FTSE 100 slid 0.1 percent.