Indian stocks are expected to open with little to no change on Wednesday, as investors look to events like the provisional union budget and interest rate decisions by the U.S. Federal Reserve and the Bank of England for guidance.
The Federal Reserve is largely anticipated not to alter interest rates today, although any deviation in their accompanying statement could significantly adjust rate outlooks. Previously, there was optimism for a rate cut in March, but now many economists believe the Fed will wait until May to initiate such a change.
In other news, the International Monetary Fund (IMF) has improved its GDP growth forecasts for India for two fiscal years in the future. The IMF remains hopeful that the odds for a global economic downturn are decreasing.
Tech shares might draw significant attention today since Alphabet reported lower-than-expected earnings from holiday advertising sales. Microsoft reported increased expenses related to the development of new artificial intelligence features.
India's benchmark indexes, the Sensex and Nifty, both dropped about 1% each on Tuesday. Meanwhile, the rupee improved by 5 paise, closing at 83.11 against the USD.
Asian markets showed a mixed performance this morning, following losses in tech shares on Wall Street overnight. Meanwhile, the dollar is on track for its most significant monthly gain since September, and gold saw a slight downturn due to decreased expectations of Fed rate cuts.
Oil prices fell after a notable increase during the previous night's U.S. trading session due to heightening tensions in the Middle East.
U.S. stocks showed a mixed closing, as investors reacted to various earnings reports and positive data on job openings and consumer confidence. The Nasdaq Composite fell by 0.8%, the S&P 500 saw a slight drop, while the Dow Jones rose by 0.4%, setting a new record for its closing figure.
European stocks showed growth for the fifth consecutive session on Tuesday following data showing the Eurozone economy evaded a technical recession in the latter half of 2023. The pan-European STOXX 600 index, Germany's DAX, France's CAC 40, and the U.K.'s FTSE 100 all saw modest gains.
