Indian shares look set to open on a positive note Tuesday, though underlying sentiment may remain cautious amid concerns about elevated oil prices and FII selling.
India’s retail inflation accelerated above the 6 percent mark in January, breaching the RBI’s upper tolerance band for the first time since January on the back of higher food and beverages prices, official data showed.
RBI Governor Shaktikanta Das earlier on Monday said the resultant high annual inflation numbers due to a low base effect should not create an alarm.
Benchmark indexes Sensex and the Nifty tumbled around 3 percent each on Monday, while the rupee fell by 22 paise to close at 75.58, extending losses for the fifth day running.
Asian markets held steady this morning after China’s central bank stepped up support for its slowing economy by injecting a net 100 billion yuan ($15.7 billion) into the banking system with its medium-term lending facility.
Treasury yields edged down amid a flatter curve and the dollar index hovered near a two-week high following mixed remarks by Federal Reserve officials James Bullard and Esther George.
Gold edged towards a three-month peak touched in the previous session and oil prices traded mixed in Asian trade, as diplomatic efforts continued to defuse the Ukraine situation, with Moscow denying a planned invasion.
U.S. stocks fluctuated before ending lower for a third straight overnight amid Ukraine tensions, concerns over worsening inflation and aggressive Fed rate hikes.
The Dow dropped half a percent and the S&P 500 shed 0.4 percent, while the tech-heavy Nasdaq Composite ended flat with a negative bias.
European stocks tumbled with damage across the board. The pan European Stoxx 600 plunged 1.8 percent.
The German DAX fell 2 percent, France’s CAC 40 index gave up 2.3 percent and the U.K.’s FTSE 100 declined 1.7 percent.
Sensex, Nifty Seeking Rebound In Cautious Trade
2022-02-15 03:01:04
