Indian shares are poised for a slight uptick at the opening on Wednesday, despite receiving mixed signals from global markets. Positive factors such as foreign fund inflows and a continuing decline in oil prices are expected to bolster investor sentiment.
Foreign investors have remained consistent buyers of Indian equities for the fifth consecutive session as of Tuesday, with purchases amounting to Rs 314.5 crore, according to provisional data from the National Stock Exchange.
Oil prices have declined for four consecutive days, as concerns over supply disruptions from Hurricane Beryl have diminished, and investors are increasingly hopeful about a potential ceasefire deal in Gaza.
On Tuesday, benchmark indices Sensex and Nifty each increased by approximately half a percent. The Indian rupee, meanwhile, exhibited little movement, closing at 83.48 against the dollar.
In Asia, markets traded predominantly lower this morning, influenced by Federal Reserve Chair Jerome Powell’s lack of specific guidance on the timing of potential interest-rate cuts.
The U.S. dollar remained strong in Asian trading in anticipation of significant U.S. economic data on consumer and producer price inflation. The U.S. Consumer Price Index (CPI) report, due on Thursday, is projected to show an inflation rate of 3.1 percent for June, down from 3.3 percent in May. The Producer Price Index (PPI) report is expected on Friday.
Gold prices saw a slight increase, while oil prices remained relatively stable after three consecutive days of decline.
U.S. stock markets closed with minimal changes overnight. Market yields rose following Fed Chair Jerome Powell's comments to the Senate Banking Committee that while inflation continues to moderate, additional positive data would reinforce the case for rate cuts. He also emphasized that reducing policy restraint later or less than needed could significantly impair economic activity and employment.
The tech-heavy Nasdaq Composite gained 0.1 percent, and the S&P 500 saw a marginal increase, setting new record highs. Conversely, the Dow Jones Industrial Average slipped by 0.1 percent.
European markets ended on a downbeat note Tuesday amid lingering uncertainty about the euro, following the French election. The pan-European STOXX 600 fell by 0.9 percent. Germany’s DAX saw a 1.3 percent dip, France’s CAC 40 plummeted by 1.6 percent, and the U.K.’s FTSE 100 declined by 0.7 percent.
