The domestic benchmarks, the BSE Sensex and the NSE Nifty, are poised to open flat on Wednesday, following mixed cues from Asian peers and Wall Street as caution prevailed in the market ahead of the U.S. Federal Reserve's policy announcement. The muted trends on SGX Nifty also indicated a subdued opening for the domestic bourses, with SGX Nifty futures trading 7 points, or 0.05%, lower at 15,714 on the Singapore Stock Exchange at 8:15 AM. There is wide speculation in the market that the Fed will raise rates more aggressively to curb inflation, which may push the world’s largest economy into recession.
On Tuesday, the domestic bourses ended a tad lower in volatile trade as investors awaited the Fed's next policy announcement on June 15 for more clarity on the road map for rate hike. The market sentiment was dented after annual wholesale price-based inflation surged to 15.88% in May due to high crude prices and raw material costs. The 30-share BSE Sensex ended 153 points, or 0.29%, lower at 52,693, and the Nifty50 declined by 42 points, or 0.27% to end at 15,732. The top losers on the BSE Sensex pack were IndusInd Bank, Tech Mahindra, Reliance Industries, Maruti, Hindustan Unilever, HDFC Bank and Asian Paints. On the sectoral front, auto and oil and gas stocks fell the most, while realty and metal indices were among best performers.
Stocks to watch
Wipro: The IT services company has said it expects to ramp up employee count in Norway to 350 in the next two years, and is increasing investment there locally to help clients capitalise on digital transformation.
Asian Paints: The paint company has acquired 51% stake in Bengaluru-based Weatherseal Fenestration for Rs 18.84 crore. Weatherseal Fenestration is a manufacturer of uPVC Windows and Door systems.
PNB Housing Finance: The board of directors of the company on Tuesday approved the issuance of non-convertible debentures aggregating up to ₹2,000 crore on a private placement basis.its
LIC of India: The insurer has raised its stake in Capri Global Capital from 5.04% to 7.06% for ₹221 crore. The state-owned firm has also hiked shareholding in Hero MotoCorp from 9.16% to 11.25%.
Ashok Leyland: The auto major’s electric vehicle arm Switch Mobility is reportedly planning to raise about $300 million for capital expenditure needs and $100 million for Switch subsidiary Ohm Global Mobility.
Zydus Lifesciences: The pharma major on Tuesday said its chairman Pankaj R Patel has been appointed as a part-time non-official director in the central board of the Reserve Bank of India (RBl).
Delta Corp, RBL Bank, Indiabulls Housing Finance: These three stocks will remain under the NSE F&O ban today as their scrip crossed 95% of the market-wide position limit.
Here are the key things investors should know before the market opens today:
Wall Street ends lower ahead of Fed decision
In the overnight trade, all three major U.S. indices closed lower as investors remained on edge ahead of the key policy statement from the Federal Reserve at the conclusion of its meeting today. The street is expecting the central bank to hike interest rate by 50 basis points to curb inflation after Friday's higher-than-expected consumer price index (CPI) data for May. The benchmark S&P 500 extended loss for the fifth straight session and settled 0.38% lower, while the Dow Jones Industrial Average fell 0.5%. The tech-heavy Nasdaq Composite added 0.18%.
Asian stocks rebound
Shares in the Asia-Pacific region opened mostly higher on Wednesday, barring Japan and South Korea, as investors rushed to buy beaten-down stocks. Regional heavyweight Japan’s Nikkei 225 fell 0.6% amid concerns about sharp falls in the yen currency, which hit a 24-year low on Tuesday as the Bank of Japan maintained low rates to boost sluggish economic growth. South Korea’s KOSPI was the worst performer in the region with a 1.1% loss, while Australia’s ASX 200 fell 0.2%.
Bucking the trend, The Hang Seng index in Hong Kong gained 1%, Indonesia’s Jakarta Composite rose 0.8%, and the Straits Times Index in Singapore added 0.3%. Taiwan’s Weighted index was also trading 0.2% higher.
In mainland China, stocks were trading higher, with Shenzhen Component and the Shanghai Composite rising 0.45% and 0.6%, respectively.
Oil prices hover around $120
The price of Brent and U.S. crude was steady during opening trade on Wednesday, hovering around $120 levels as fresh Covid-19 cases in China raised concerns about the demand outlook. However, the growing demand for gasoline in the U.S. and the partial ban on Russian oil imports by the European Union pushed prices higher.
In Asian trading hours, the Brent oil for July delivery was up 0.2% to $121.4 per barrel, while the U.S. West Texas Intermediate (WTI) crude July futures rose 0.3% to $119.3 a barrel.
FIIs, DIIs data
The foreign institutional investors (FIIs) continued their selling spree in the Indian equity market on June 14, while domestic institutional investors (DIIs) continued to support the market. As per the exchange data, FIIs net sold shares worth ₹4,502.25 crore, while DIIs net purchased shares worth ₹3,807.6 crore.