Sensex, Nifty may open lower on negative Asian stocks
Investors were cautious ahead of the Federal Reserve's decision on interest rates and release of economic forecasts on Wednesday.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 31 points at the opening bell. Overseas, Asian stocks traded lower Wednesday as traders assess the debt crisis at China Evergrande Group and gird for a Federal Reserve meeting that is expected to signal a reduction in stimulus later this year. Markets in Hong Kong are closed for a holiday.
Property company Evergrande, which has more than $300 billion of liabilities, missed some interest payments due Monday and investors are seeking clues about how Beijing plans to deal with the cash crunch. US stocks on Tuesday fought to rebound from Monday’s rout, but failed as the Dow Jones Industrial average trended lower for most of the session and closed in the red. Worries over troubles at developer China Evergrande kept a lid on the market.
Investors were cautious ahead of the Federal Reserve’s decision on interest rates and release of economic forecasts on Wednesday. Investors are looking for more information from Fed Chairman Jerome Powell on Wednesday about the central bank’s plans to taper its bond buying, specifically when that will happen. Powell said last month that he sees the Fed slowing its $120 billion in monthly purchases at some point this year. The US current account deficit increased to a 14-year high in the second quarter as businesses boosted imports to replenish depleted inventories amid robust consumer spending.
The Commerce Department said on Tuesday the current account deficit rose 0.5% to $190.3 billion last quarter.
Domestic markets:
Back home, the key equity indices reversed early losses and ended with sharp gains on Tuesday. Recovering global cues boosted sentiment. The barometer index, the S&P BSE Sensex, advanced 514.34 points or 0.88% to 59,005.27. The Nifty 50 index added 165.10 points or 0.95% to 17,562. Foreign portfolio investors (FPIs) bought shares worth Rs 1,041.92 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,167.62 crore in the Indian equity market on 21 September, provisional data showed.
Powered by Capital Market – Live News