Indian benchmarks set to open higher after 2-day market rout
India's benchmark indexes are expected to inch higher at the open on Wednesday, tracking other Asian markets, after a two-day rout that saw domestic stocks lose $180 billion in market value on U.S. tariff fears and earnings worries.
The GIFT Nifty futures were trading at 23,198.5 as of 08:19 a.m. IST, indicating that the blue-chip Nifty 50 will open above Tuesday's close of 23,071.8.
The Nifty logged its fifth straight session of losses in the prior session.
Other Asian markets opened higher, while Wall Street equities logged modest gains overnight as investors took stock of mounting global trade worries and comments from the Federal Reserve Chair, indicating a patient path for rate cuts. [MKTS/GLOB]
Investors now await India's inflation data, due after market close. Consumer inflation likely fell sharply to a five-month low of 4.6% in January on slowing food price rises, according to economists polled by Reuters.
Moderating price pressures will give India's central bank room to focus on addressing slowing economic growth, which has spilled over to corporate earnings and consumption, hurting the markets.
The blue-chips Nifty 50 and BSE Sensex have been languishing in the correction zone, a 10% drop from record high levels, for the last three months.
The broader small and midcaps are inching towards the bear market territory, a 20% slide from all-time highs.
The Nifty and Sensex lost 2% in the last two sessions after U.S. President Donald Trump said on Sunday he would slap reciprocal tariffs on several countries, a decision which could potentially hurt the world's fifth-largest economy.
India, in its bid to avoid a trade war, is considering tariff cuts in at least a dozen sectors to boost U.S. exports in line with New Delhi's domestic production plans, government officials said.
Indian Prime Minister Narendra Modi will visit the U.S. this week.
STOCKS TO WATCH
** Hyundai Motor India, Ola Electric Mobility, Sundaram Clayton and Zaggle Prepaid Ocean Services will be among th companies in focus after inclusion into key MSCI global indexes
** Berger Paints' third-quarter profit fall less than anticipated as strength in industrial business helped cushion demand weakness
** Bayer CropScience posts a drop in December quarter profit, hurt by weak demand and rising costs
($1 = 86.7830 Indian rupees)
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