India’s equity benchmarks are set for a muted start on Wednesday as caution ahead of the U.S. Federal Reserve’s policy decision and delay in India-U.S. trade deal overshadow better-than-expected earnings from infrastructure major Larsen & Toubro.
The Gift Nifty futures were trading at 24,825 points as of 7:50 a.m. IST, indicating that the Nifty 50 will open near Tuesday’s close of 24,821.1.
While the Fed is expected to keep rates unchanged later in the day as it sifts through mixed economic data, comments from Chair Jerome Powell will be closely watched for economic and inflation outlook.
Higher U.S. interest rates make emerging market equities like India less attractive for foreign investors, who have been on a selling spree in India this month.
Foreign investors sold shares worth 46.37 billion rupees ($532.49 million) on Tuesday, as per provisional data.
They have sold Indian shares worth $1.61 billion so far this month.
Uncertainty over India’s interim trade deal with the U.S. ahead of President Donald Trump’s August 1 deadline has been weighing on investor sentiment.
India is preparing to face higher U.S. tariffs — likely between 20% and 25% — on some of its exports as a temporary measure, as it holds off on fresh trade concessions ahead of Washington’s August 1 deadline, two Indian government sources said.
Among stocks, Larsen & Toubro will be in focus after it beat quarterly profit estimates on Tuesday, boosted by rising overseas contracts.
Comments
Comments are closed for this article.