Markets could open flat following mildly positive Asian markets and mixed US markets on Tuesday - HDFC Securities
Indian markets could open flat following mildly positive Asian markets today and mixed US markets on Tuesday. U.S. stocks finished mostly higher on Tuesday as the blue-chip Dow shed early gains ahead of a policy update by the Federal Reserve.
The Nasdaq led the broader market rally as technology shares continued to make up lost ground from last week’s selloff. U.S. industrial production rose 0.4% in August after a revised 3.5% gain in July. The New York Fed’s Empire State business conditions index rose 13.3 points (vs 6 forecast) to 17 in September. U.S. import prices increased more than expected for the same month, supporting the view that inflation pressures were building up.
The Federal Reserve started its policy-setting meeting on Tuesday, which will be followed by a news conference and policy statement on Wednesday, while central-bank decisions from the Bank of England and the Bank of Japan are due on Thursday.
Snowflake, a provider of cloud-based data storage and analysis software, priced its IPO above its increased range in an offering that values the company at $33.3 billion. Snowflake is selling 28 million shares at $120 a piece, according to a person familiar with the matter who asked not to be named because the pricing hasn’t been made public. India’s trade deficit widened in August as a rebound in exports flattened out and imports rose sequentially led by higher shipments of gold.
The trade deficit stood at $6.77 billion compared to a deficit of $4.83 billion in July 2020. Merchandise exports contracted by 12.66% year-on-year to $22.7 billion in August, compared to a contraction of 10.21% in July. Merchandise imports contracted by 26.04% to $29.47 billion in August, compared to a contraction of 28.4% last month. Non-oil, non-gold imports fell 29.61% to $19.35 billion in August 2020, from 29.15% last month.
Asian shares were mildly up on Wednesday as investors awaited the Federal Reserve's view on the economy at the end of its policy meeting, although upbeat Chinese and U.S. economic data is likely to give sentiment a tailwind. Provisional trade statistics from Japan’s Ministry of Finance released Wednesday showed the country’s exports in August falling 14.8% (vs -16.1% forecast) as compared to a year ago. Indian equity benchmark indices opened up on Sept 15 and gradually inched up during the day to end the day higher.
The Nifty closed at its highest in 8 sessions. At close the Nifty was up 82 points or 0.71% at 11521.8. Nifty has closed well and now will face resistance from 11584.
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