(Photo : NSE)
Indian equity benchmark indices opened lower on Wednesday, weighed down by negative trends from Asian markets and cautious sentiment ahead of key global economic data. The BSE Sensex slipped 70 points, or 0.08%, to 81,851, while the Nifty 50 was down 20 points, or 0.08%, to 25,020.
The weak opening reflects broader concerns around inflation and interest rate decisions in the U.S., as well as the upcoming U.S. presidential debate.
With global uncertainties mounting, market sentiment remains cautious, and volatility is expected throughout the day. Asian markets opened lower, mirroring global investor caution ahead of the U.S. Consumer Price Index (CPI) data, which is expected to provide critical insights into future interest rate cuts by the Federal Reserve.
• Nikkei 225: Japan's Nikkei 225 fell sharply by 401.81 points, or 1.13%, to 35,757.35, as fears of a global slowdown took a toll on investor sentiment.
• Hang Seng: Hong Kong's Hang Seng index dropped 241.67 points, closing at 16,992.42, reflecting continued concerns over the sluggish economic recovery in China.
• Kospi: South Korea's Kospi index lost 9.65 points, or 0.38%, to 2,513.78, following the global trend of caution ahead of U.S. data releases.
Investors are particularly focused on the U.S. CPI numbers, which will likely influence the Fed's monetary policy stance.
The uncertainty surrounding interest rates, coupled with declining oil prices, has dampened market sentiment across the region.
Key Stocks to Watch
• HDFC Bank: The RBI imposed a ₹1.91 crore fine on HDFC Bank for non-compliance with guidelines on interest rates, recovery agents, and customer service.
• Axis Bank: Axis Bank was penalized ₹1 crore by the RBI for failing to comply with regulations related to interest rates and recovery practices.
• Tata Motors: Tata Motors received approval from the Competition Commission of India for the merger of Tata Motor Finance with Tata Capital, a move expected to enhance operational efficiency.
• Reliance Industries: Reliance Retail Ventures entered into a joint venture with Israel's Delta Galil Industries, signalling plans for expansion in India's retail market.
• IREDA: IREDA's subsidiary, IREDA Global Green Energy Finance IFSC Ltd, obtained provisional registration from the International Financial Services Centre Authority (IFSCA) as a finance company.
With global markets showing signs of volatility and key economic data on the horizon, Indian equities are likely to face pressure throughout the day, especially as oil prices continue to hover near multi-year lows. Investors are advised to remain cautious as the market digests these developments.