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Market Summary

The market is expected to open in the red as trends in the SGX Nifty indicate a negative opening for the broader index in India on Wednesday. The market extended gains for the second straight session, but there was some profit-taking at higher levels which led to a loss of around 90 points on the Nifty50 from the day's high of 17,800.

US stock indices closed sharply lower on Tuesday after Federal Reserve Chair Jerome Powell told Congress the central bank will likely need to raise interest rates more than previously expected as it seeks to rein in stubbornly high inflation. The Dow Jones Industrial Average fell 574.98 points, or 1.72 percent, to 32,856.46; the S&P 500 lost 62.05 points, or 1.53 percent, at 3,986.37; and the Nasdaq Composite dropped 145.40 points, or 1.25 percent, to 11,530.33.

Asia-Pacific shares tumbled on Wednesday after Federal Reserve Chairman Jerome Powell cautioned that interest rates may need to be higher than the central bank expected, fuelling concerns of a potentially larger hike at the next policy meeting.

Trends in the SGX Nifty indicate a negative opening for the broader index in India. The Nifty futures were trading around 17,736 levels on the Singaporean exchange against March 6 close of 17,776.

Macro News

Fed likely needs to raise rates higher and possibly faster: Fed's Powell:

The Federal Reserve will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the "totality" of incoming information suggests tougher measures are needed to control inflation, Fed Chair Jerome Powell told US lawmakers on Tuesday.

Fed's Powell sees long-term damage if US debt ceiling not raised:

The United States risks long-term damage if Congress does not raise the national debt ceiling, Federal Reserve Chair Jerome Powell said on Tuesday. "Congress really needs to raise the debt ceiling... if we fail to do so, I think that the consequences are hard to estimate, but they could be extraordinarily adverse and could do long-standing harm," Powell said during an appearance before the Senate Banking Committee as part of his semi-annual testimony on the economy and monetary policy.

Dollar jumps on hawkish Powell testimony

The dollar extended gains against a basket of currencies on Tuesday after Federal Reserve Chairman Jerome Powell said that the US central bank will stay the course until the job is done, adding that the ultimate level of interest rates is likely to be higher than previously anticipated. The dollar index was last up 0.91 percent on the day at 105.2. The euro dropped 0.84 percent to $1.0593. The greenback gained 0.68 percent to ¥136.85.

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