CLOSING BELL: Bottom fishing in select heavyweights lifted benchmark indices off lows, leading to a positive close for a third consecutive day on Wednesday
In a bid to bring down high inflation, the Fed has, since March 2022, hiked interest rates by 450 basis points
Traders cautious before Fed Chair Powell's speech, market holiday
India, according to them, is among the more sensitive markets to US rates, and demonstrates the most sensitivity to local rates given higher influence of domestic flows into the market
NSE Nifty50's sharp rebound from its 200-day moving average of 17,400 is what is giving technical analysts the requisite confidence
Strong US consumer demand and a tight labour market would force the central bank to battle inflation for longer
The argument that a country can be an active participant in global trade but avoid financial globalisation is fundamentally faulty
ECB President Christine Lagarde has already said the bank till hike rates, if needed
Analysts believe that this down trend is a short-term gyration and investors' should use this dip to accumulate high quality growth stocks
Indian rupee is expected to decline versus the dollar at open following an overnight jump in U.S. yields on bets of more rate hikes from the U.S. Federal Reserve
Traders are awaiting the minutes of the latest Federal Reserve meeting, due on Wednesday, as data on core inflation has raised the risk of interest rates remaining higher for longer
Globally, too, sticky inflation seems to be a cause for concern. Last week, two Federal Reserve (US Fed) officials suggested that the US central bank may need to keep interest rates elevated ahead
Geopolitical tensions were ever present with North Korea firing more missiles and talk of Russia ramping up attacks in Ukraine before Friday's one-year anniversary of the invasion
The greenback advanced broadly in early Asia trade, sending sterling 0.12% lower to $1.2028 and the Aussie falling 0.18% to $0.6866
The Nifty50, on the other hand, ended the session at 17,944, down 91 points or 0.5 per cent
RBI likely sold dollars to shield rupee amid Fed hike concerns
Both banks forecast Fed fund rates at 5.25%-5.5% range
The non-deliverable forwards indicated the rupee would open around 82.60-82.62 per dollar, compared with the 82.4925 closing in the previous session
Bank Nifty underperforms after RBI raises hikes rate by 25bps
The non-deliverable forwards indicate an opening of 82.68-82.74 for the rupee, compared with 82.70 in the previous session