The Indian stock market indices, Sensex and Nifty are expected to open lower on Wednesday tracking weakness in global peers. Asian markets traded lower, while the US stock market indices ended in the red overnight.
Indian markets were shut for a holiday on Tuesday.
The domestic benchmark equity indices ended lower on Monday amid weak global cues, ahead of key central bank meetings while concerns over global economic growth persisted.
“This week markets would take cues from their global peers as several central banks including the US Fed would hold policy meetings. Market is showing strength and is sustaining above 20,000 levels. Overall, we expect the market to gradually inch upwards with minor profit booking at intervals,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded lower following overnight fall on Wall Street and as investors await the US Federal Reserve’s interest rate decision. China kept its benchmark loan rates unchanged for September.
Japan’s Nikkei 225 fell 0.2 % and the Topix declined 0.3% after Japan’s trade deficit narrowed by two-thirds on a year-on-year basis in August.
Australia’s S&P/ASX 200 lost 0.11%,
South Korea’s Kospi was flat, while the Kosdaq index fell 0.3%.
Hong Kong’s Hang Seng index futures were trading lower at 17,980, compared to the HSI’s last close of 17,997.17.
Gift Nifty was trading at 20,080 as against Nifty futures’ Monday close of 20,170, indicating a gap-down opening for the Indian benchmark indices.
Wall Street
The US stock market ended lower on Tuesday as the two-day monetary meeting of the US Federal Reserve convened, with the interest rate decision to be announced on Wednesday.
The Fed Chair Jerome Powell-led Federal Open Markets Committee (FOMC) is widely expected to keep the interest rate unchanged after having raised its policy rate by 525 basis points since March 2022 to the current 5.25%-5.50% range.
The Dow Jones Industrial Average declined 106.57 points, or 0.31%, to 34,517.73, while the S&P 500 fell 9.58 points, or 0.22%, to 4,443.95. The Nasdaq Composite ended 32.05 points, or 0.23%, lower at 13,678.19.
Among stocks, Maplebear shares surged 12.3%, while Arm Holdings declined 4.9%.
Walt Disney share price dropped 3.6% after announcing that it would nearly double its capital expenditure for its parks business over the next 10 years.
Also Read: Fed policy meet begins: How will the US Fed interest rate decision impact the stock market?
China keeps benchmark lending rates unchanged
China’s banks kept their benchmark loan rates unchanged for September. The People’s Bank of China left its one-year loan prime rate unchanged at 3.45%, while the five-year benchmark loan rate was held at 4.2%.
US housing starts hit three-year low
US homebuilding plunged to a more than three-year low in August as a resurgence in mortgage rates weighed on demand for housing/ However, a rise in permits suggested new construction remained supported by a dearth of homes on the market, Reuters reported.
Housing starts tumbled 11.3% to a seasonally adjusted annual rate of 1.283 million units last month, the lowest level since June 2020, as per the Commerce Department data on Tuesday. Data for July was revised lower to show starts accelerating to a rate of 1.447 million units instead of the previously reported 1.452 million units.
Japan August exports fall 0.8% YoY
Japan’s exports fell 0.8% year-on-year in August, down for the second consecutive month led by declines in China, Ministry of Finance (MOF) data showed on Wednesday.
That compared with economists’ median estimate for exports to fall 1.7%.
Reflecting weak domestic demand, imports slid 17.8% from the same month a year before, weighed down by energy costs. As a result, the trade balance came to a deficit of 930.5 billion yen ($6.30 billion).
India-Canada feud threatens chill over billions in investments
A diplomatic fight between Canada and India over the murder of a Sikh leader threatens to put a freeze on growing economic ties between the two countries. Investments between Canada and India rose to C$36.2 billion in 2022, up 37% in four years, according to Statistics Canada data, Bloomberg reported.
CPPIB, Canada’s largest pension manager, had $21 billion invested in India as of about a year ago. One major investment, a 2.7% stake in Kotak Mahindra Bank Ltd., is worth ₹96 billion ($1.2 billion).
Caisse de Depot et Placement du Quebec had C$8 billion invested in India at the end of last year and Ontario Teachers’ Pension Plan said it has more than C$3 billion invested there, the Bloomberg report said.
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(With inputs from Agencies)
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