Indian Benchmark indices opened with minor gains tracking weakness in Asian peers after strong US economic data and Federal Reserve’s recent commentary dampening hopes of rate cuts.
In March. BSE Sensex opened 239.40 points, or 0.33 per cent higher at 71970.80 while NSE Nifty inched 53.50 points, or 0.25 per cent higher at 21825.20. Nifty IT and auto sectors led the growth in indices, only to be held back by banking shares.
Indian Rupee opened 2 paise stronger at 83.03 against the US dollar. US dollar index futures, which measures the global currency against its six peers, is down 0.03 points, or 0.03 per cent at 104.29.
International crude price advanced on concerns surrounding fuel supply, as ongoing war in Europe and West Asia refuses to decline. Brent oil futures gained 0.05 points, or 0.06 per cent at $78.04 a barrel while WTI oil futures inched 0.06 points, or 0.08 per cent at $72.84 per barrel.
Domestic benchmark indices closed lower on Monday due to a pullback in financials. According to exchange data, foreign portfolio investors (FPIs) bought a net $62.5 million worth of shares while domestic institutional investors sold stocks worth 11.89 billion rupees on a net basis.
Asia-Pacific futures remained largely in red except for Chinese markets. CSI 300 index and Hang Seng advanced by 2 per cent following action against recent sell-offs in equities. The Reserve Bank of Australia is set to announce its policy decision, with markets expecting the central bank to hold rates at 4.5 per cent. Japan’s Nikkei fell 0.66 per cent at 36,114.06 while South Korea’s Kospi traded in red after dipping 0.52 per cent at 2,578.81.
Wall Street equities ended the previous session in red after swell-offs spurred by higher bond yields and an unlikely chance of rate cuts by the US Fed in March meeting. Fed Chair Jerome Powell’s comments led to bond rise by 13 per cent to 4.16 per cent. Mcdonald stocks dipped by 3 per cent on lower than expectation Q4 earnings. Dow Jones Industrial Average (DJIA) fell 0.71 per cent at 38,380.12 while S&P 500 and NASDAQ futures dipped 0.32 per cent and 0.20 per cent respectively.