With volatility anticipated to be a larger theme across global financial markets, Indian equities benchmarks dipped early on Wednesday, reversing positive returns recorded at the tail end of the previous session after see-sawing between gains and losses.
Both the NSE Nifty index and the 30-share BSE Sensex index opened in the red.
The Sensex index, which had nose-dived on Monday and earlier in the previous session, recovered to close on Tuesday at 59,031.30, up 257.43 points, or 0.44 percent, while the Nifty gained 86.70 points, or 0.50 percent, to reach 17,577.50.
The SGX Nifty indicated a somewhat poorer start for Indian stocks on Wednesday. To establish whether a recent fall in risk appetite affects flows, traders will review daily data on equity flow.
The dollar loomed large on Wednesday as Asian stock markets fell for an eighth straight day as investors remained cautious ahead of this week’s Jackson Hole conference.
The most recent official to reiterate the Fed’s top objective of keeping inflation under control was Neel Kashkari, president of the Minneapolis Federal Reserve Bank, who said on Tuesday that his biggest worry is underestimating the strength of price pressures.
The MSCI index of Asian shares ex-Japan fell 0.2% in early trade, the index’s ninth consecutive day of losses. In Japan, the Nikkei fell by 0.6%. ” On that front, Neel Kashkari yesterday was quoted talking about the need for the Fed to dampen inflation. No hints about a slowdown of rates or 2023 cuts. That could be a clue as to Powell’s tone on Friday,” he added. S&P 500 futures fell by 0.3% early on Wednesday, while FTSE and European futures also saw a little improvement.
Brent oil futures are presently trading at about $100 per barrel due to signs of US demand and Saudi Arabia’s rhetoric of supply reduction. The higher price of oil helped Australian energy stocks.
There were not many events scheduled before the Jackson Hole meeting, so there were little changes elsewhere, and the dollar’s value against the euro remained close to a two-decade high.
