BENGALURU: Indian shares are likely to open flat on Wednesday, in sync with other Asian peers, ahead of key US inflation data that could influence the quantum of the Federal Reserve’s expected rate cut this month.
The GIFT Nifty was at 25,091.5 points, as of 08:12 a.m. IST, indicating the NSE Nifty 50 will open near its previous close of 25,041.1.
Asian markets were subdued, with the MSCI Asia ex-Japan index shedding about 0.15%. Most Wall Street equities closed higher overnight.
IT and pharma stocks nudge Indian shares higher
Concerns over softening global demand sent Brent crude futures to their lowest levels since December 2021 on Tuesday and added to investor caution, ahead of a keenly awaited US data.
The CPI report is expected to show inflation drifting closer to the Fed’s targetted 2%, which could allow the US central bank the opt for an aggressive 50-basis-point rate cut next week, if required.
Markets are pricing in a 66% chance of a 25 bps rate cut on Sept. 18, according to CME FedWatch. India’s benchmark Nifty 50 index has gained about 0.75% in previous two sessions, and was about 1.2% away from record-high levels hit last week.
Comments
Comments are closed for this article.