Indian shares look set to open on a positive note Wednesday amid a global rally after Jerome Powell’s comments to the Senate Banking Committee appeared to be less hawkish than expected.
Powell said he expects a normalized supply chain to help ease inflation pressures in 2022 and added the Fed would be willing to hike interest rates further than projected to battle consistently high inflation.
Meanwhile, India’s economic growth is expected to be 8.3 percent in the current financial year and 8.7 percent in 2022-23, according to World Bank’s “Global Economic Prospects” report.
Benchmark indexes Sensex and the Nifty ended slightly higher on Tuesday to extend gains for the third day running while the rupee gained 13 paise to close at over three-month high of 73.91 against the greenback on the back of overseas inflows.
Asian markets were broadly higher this morning, as investors digested the latest Chinese inflation data and awaited U.S. inflation figures for rate clues.
Gold traded flat and the dollar slid to its weakest since November against major peers while oil extended strong overnight gains after supportive Fed remarks.
U.S. stocks bounced back overnight and Treasury yields retreated in choppy trade as investors absorbed remarks from the Federal Reserve that interest rates are likely to rise this year, but monetary policy will take a broad and forward-looking view, keeping pace with an ever-evolving economy.
The tech-heavy Nasdaq Composite climbed 1.4 percent, while the S&P 500 added 0.9 percent and the Dow rose half a percent.
European stocks also ended firmly in positive territory on Tuesday, with a rebound in tech stocks along with expectations for a strong earnings season helping underpin sentiment.
The pan European Stoxx 600 gained 0.8 percent. The German DAX rallied 1.1 percent, France’s CAC 40 index advanced 1 percent and the U.K.’s FTSE 100 rose 0.6 percent.
Market Analysis
Sensex, Nifty Seen Opening Up Amid Global Rally
2022-01-12 03:08:48
