INDIAN BENCHMARKS Global chaos signal weak start for Indian markets
The Indian shares are likely to see a weak start as the global cues look unsupportive with SGX Nifty trading 27 points lower..
Indian equity benchmarks are likely to witness a gap down opening on Thursday amidst uncertainty surrounding US interest rate outlook with the FOMC minutes showing that policymakers discussed the prospect of raising interest rates in June, souring risk taking appetite.
Fed minutes signaled that policymakers said a rise in interest rates next month is warranted if the world’s biggest economy continues to make progress.
Higher interest rates in the US may lead to capital outflows from emerging markets.
Losses in the CNX Nifty Index Futures for May delivery which fell by 0.51 per cent or 40 points at 7,837 at 10:23 AM Singapore time also signal that Dalal Street may open on a bearish note today.
Asian stocks were trading mixed as commodity producers declined as a surging dollar weighed on metal and oil prices. The dollar jumped as Fed minutes signaled the possibility of a June rate hike.
China’s Shanghai Composite rose, Hang Seng fell and Japan’s Nikkei 225 rallied as a weaker yen bolstered the appeal of exporter stocks.
Wall Street ended on a mixed note on Wednesday as traders weighed the relatively hawkish FOMC minutes.
European stock markets recovered from a weak start on Wednesday, with a rally in banks and a rebound on Wall Street helping to counteract some weak corporate earnings from companies including Switzerland's Sonova.
Major Headlines of the day:
Glenmark gets USFDA nod for rufinamide
Castrol India promoter divests 7% stake viz 34.62 million shares
Indian Hotels puts Taj Boston on block to cut debt
Trend in FII flows: The FIIs were net sellers of Rs -250.70 Cr in the cash segment on Wednesday while the DIIs were net buyers of Rs 239.91 Cr, as per the provisional figures.