Home / Business / Money / Indian market may start soft after late Wall Street selloff

Indian market may start soft after late Wall Street selloff

Indian equities may start on a flat-to-lower note Wednesday, following mixed cues from global markets, as Asian markets edged largely higher but Wall Street closed lower in a late plunge overnight.

TheNewsInternational Team

Indian equities may start on a flat-to-lower note Wednesday, following mixed cues from global markets, as Asian markets edged largely higher but Wall Street closed lower in a late plunge overnight.

In Singapore, SGX Nifty futures were down 1 percent to 7,807.

Stocks, though, will find some support after the People’s Bank of China finally moved, effecting an interest rate cut and a cut in the reserve ratio, to spur sentiment in the flagging economy that has witnessed back-to-back bubble bursts in housing as well as equities.

Today’s move will follow up on yesterday’s surge, which was a day after Dalal Street suffered its worst knock-down in several years.

The after-effect of Monday’s selloff will still linger, as jittery traders may use any rally to sell their positions, capping any real upside, CNBC-TV18’s Anuj Singhal said.

Closer home, the clamour for interest rate is rising, as the monsoon plays itself out and after inflation’s latest slide below the Reserve Bank’s long-term 4 percent target. Minutes of the RBI’s last policy meeting showed Governor Raghuram Rajan had ignored an advisory committee’s call for a rate cut.

Investors will also eye whether the government will succeed in holding a special session of Parliament to clear vital bills such as GST, a move that has been talked about of late.

In other asset classes, gold and crude were trading weak while the US dollar gained against a basket of currencies.

Leave a Reply

Scroll To Top