Shares in India are anticipated to begin trading at the same level or slightly higher than yesterday after experiencing a significant drop in the previous session. The market is expected to remain range-bound due to the absence of any significant domestic triggers and caution preceding the Federal Reserve's rate decision, which is due later today.
Investors are hopeful that the update from the Federal Reserve would provide more clarity on the potential timing and pace of rate cuts anticipated in 2024. On Tuesday, key indexes Sensex and Nifty each fell more than a percent, while the Indian rupee depreciated by 12 paise to close at 83.02 against the US dollar.
Asian stock markets for the most part traded higher this morning, with Japanese markets being closed for a holiday. The Japanese yen struggled near a four-month low against the dollar following the Bank of Japan's first-rate hike in 17 years.
Meanwhile, gold remained stable, while oil prices decreased slightly after two days of increasing dues to supply concerns and signs of stronger demand from the US and China. US stocks managed to reverse initial losses from the previous night as Treasury yields saw a broad dip and Nvidia's share price increased for the second consecutive day after the company revealed its latest generation of artificial intelligence chips.
On the economic front, data for housing starts and building permits issued in February exceeded expectations. The Dow Jones industrial average increased by 0.8%, the S&P 500 rose 0.6% to reach a record closing level, and the tech-centric Nasdaq Composite Index increased by 0.4%.
European stock markets also finished marginally higher on Tuesday as investors awaited the outcome of the Federal Reserve and Bank of England policy meetings. The pan-Europe STOXX 600 grew 0.3%, while Germany's DAX and the UK's FTSE 100 gained 0.3% and 0.2% respectively. France's CAC 40 also went up by 0.7%.
