Indian shares may struggle for direction on Wednesday as investors react to mixed global cues and encouraging earnings results from the likes of Grasim Industries and Bank of India.
While the ongoing tech selloff may continue, telecom stocks may attract some buying amid reports that prepaid tariffs are likely to be increased by Diwali 2022.
Benchmark indexes Sensex and the Nifty fell around half a percent each on Tuesday while the rupee slipped 4 paise to close at 77.59 against the dollar.
Asian markets traded mostly higher this morning despite increasing concerns over surging inflation and global growth.
Gold held near a two-week high, buoyed by a pullback in U.S. Treasury yields and the dollar. Oil prices rose over 1 percent on the prospect of tight supplies.
U.S. stocks ended mostly lower overnight on growth and earnings worries, as housing data disappointed and Snap warned of weaker than expected second quarter results, citing deteriorating macroeconomic trends.
The tech-heavy Nasdaq Composite fell 2.4 percent to end at its lowest closing level since November 2020 and the S&P 500 shed 0.8 percent to hover near bear market territory, while the Dow edged up 0.2 percent.
European stocks fell on Tuesday, as a broad package of Chinese measures to support the economy underwhelmed investors and data showed U.S. and euro zone business activity slowed in May.
The pan European Stoxx 600 declined 1.1 percent. The German DAX lost 1.8 percent, France’s CAC 40 index gave up 1.7 percent and the U.K.’s FTSE 100 dipped 0.4 percent.
Market Analysis
Sensex, Nifty Seen Flat To Slightly Higher At Open
2022-05-25 03:00:19
