Indian Shares Seen Flat On Dovish Fed Comments
(RTTNews) - Indian shares are seen opening on a flat note on Wednesday, with dovish Fed comments likely to limit potential losses, if any.
New York Fed President John Williams said he believes it might be appropriate to raise interest rates one more time this year, but there is no need for further tightening in 2027. U.S. Treasury yields edged lower overnight following William's remarks.
Investors now await the U.S. consumer price inflation report as well as speeches from Federal Reserve officials for further clues on the path of interest rates.
Benchmark indexes Sensex and Nifty soared 1.5 percent and 1.6 percent, respectively on Tuesday, with information technology stocks leading the surge as enthusiasm for artificial intelligence eased in global markets.
The rupee rose 49 paise to close at 95.28 against the dollar, adding to the previous session's surge after the Reserve Bank of India (RBI) announced a slew of measures to support the domestic currency and manage liquidity.
RBI governor Sanjay Malhotra said in an interview that the central bank had acted because speculative activity was amplifying currency volatility instead of serving genuine hedging needs.
Foreign institutional investors (FIIs) net sold shares worth Rs 1,305.13 crore on Tuesday, while domestic institutional investors (DIIs) net bought shares to the extent of Rs 2,439.24 crore, according to provisional exchange data.
Asian stocks were mixed this morning, steadying after two days of losses as pressure on tech stocks eased in the wake of dovish Fed comments. South Korean stocks rebounded after five straight sessions of losses as foreign investors returned to the market.
The U.S. dollar languished after falling from an 18-month high in the previous session. Gold held steady at $4,164 an ounce after falling 0.8 percent in the previous two sessions.
Brent crude prices rose more than 1 percent toward $107 a barrel, recouping losses from the previous session amid escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels.
Saudi Aramco's Dhahran headquarters was hit during a Houthi missile attack on Tuesday, stoking fresh uncertainty over a recovery in energy shipments from the Persian Gulf.
Tehran has intensified attacks on ships sailing through the Strait of Hormuz, although the U.S. Central Command said it had helped facilitate the passage of more than 19 million barrels of crude though the strategic waterway on Monday.
Meanwhile, U.S. President Donald Trump, who is facing growing backlash over his plan to import diesel from Russia, defended the agreement and said the additional supplies would enter theglobal marketand help ease elevated prices.
U.S. stocks fluctuated before ending modestly lower overnight as mixed earnings news from financial giants Wells Fargo, JPMorgan Chase and Goldman Sachs failed to quell broader concerns about inflation and potential Fed rate hikes.
A deepening global semiconductor sell-off on concerns over high artificial intelligence spending, rising financing costs and Chinese competition also added to pressure.
The Dow dipped 0.4 percent, the tech-heavy Nasdaq Composite slipped 0.2 percent and the S&P 500 edged down marginally.
European stocks gave up early gains to end slightly lower on Tuesday, retreating from a one-week high as benchmark gas prices hit their highest level in nearly four years on concerns over low storage levels and potential supply disruptions.
The pan-European STOXX 600 edged down 0.1 percent. The German DAX, France's CAC 40 and the U.K.'s FTSE 100 all slipped by 0.1 percent.
