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Indian markets could open flat, in line with mixed Asian markets today and mildly negative US markets on Tuesday..… - HDFC Securities

U.S. stocks closed lower Tuesday after a weaker-than-expected reading on consumer confidence, while downside risks appeared limited by signs that efforts by Federal Reserve officials to soothe worries over a pickup in inflation were bearing fruit as bond yields eased further. Yields for long-dated U.S. government debt on Tuesday fell for a fourth straight session, carving out their lowest level in about three weeks.

The Conference Board said its survey-based U.S. consumerconfidence index slipped to 117.2 in May from a revised 117.5 a month earlier. The original April reading was notably higher at 121.7 and had marked a pandemic high. New home sales fell in April by nearly 6% as affordability constraints began to weigh on home buyers. Earlier, the CoreLogic Case-Shiller U.S. home price index for March rose 13.3% on an annual basis in March.

US Fed officials, with few exceptions, have offered reassurances that they view near-term inflation pressures as transitory, signaling they would look through a near-term pickup in price pressures as the economy recovers from the coronavirus pandemic.

U.S. efforts to address competition with China progressed on Tuesday when the chairman of the House of Representatives Foreign Affairs Committee introduced sweeping legislation to boost economic competitiveness and push Beijing on human rights

Asian shares were mixed on Wednesday while the U.S. dollar stood near its lowest levels this year after U.S. Federal Reserve officials reaffirmed a dovish monetary policy stance, providing yet more assurance to investors worried about the inflation outlook. On Wednesday, China’s central bank set the yuan’s daily midpoint fixing at its strongest level since June 2018 after the currency tested a key level against the dollar a day earlier, prompting state banks to step in to curb the rally.

Indian benchmark equity indices ended little changed on May 25 after a volatile session. At close, the Nifty was up 10.80 points or 0.07% at 15208.50.

Nifty has again run into resistance closer to 15300 levels. Reports of a fresh stimulus package in India have raised hopes of an economic turnaround soon. 15137-15294 will be the trading band for the Nifty in the near term.

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