Sensex, Nifty seen lower as US yields climb
(RTTNews) – Indian stocks are expected to open lower on Tuesday amid concerns over inflation, rising interest rates and increasing Covid-19 cases around the world.
Foreign Institutional Investors (FII) sold net shares worth Rs 124.23 crore on Monday, while Domestic Institutional Investors (DII) bought net shares worth Rs 481.55 crore on the stock market, according to data from NSE.
Analysts say capital inflows to India will continue amid expectations of inclusion in the global bond index. Traders are awaiting retail inflation data for December due Wednesday for short-term directional indices.
Benchmarks rose more than 1% each on Monday to extend gains for the second straight session as the rupee rose 0.4% to close at 74.04 / 05 per dollar, marking a closing high two months and the biggest single-day gain since December 30. .
Asian stocks were mostly down this morning, reflecting lingering concerns about the economic impact of the Omicron variant of the coronavirus and the likelihood that the Federal Reserve will raise interest rates in the near future.
Fed funds futures have valued an almost 90% chance of a rate hike in March and a more than 90% chance of another by June.
Oil resumed its uptrend after two days of losses. The dollar remained stable and gold was muted ahead of key US inflation data as well as a Senate hearing on the re-appointment of Fed Chairman Jerome Powell.
In his prepared opening remarks, released Monday, Powell acknowledged that high inflation is wreaking havoc on American families.
Bitcoin recovered to around $ 42,000 after dropping below $ 40,000.
US stocks succumbed to an early sell-off before ending mixed overnight as bets on the rate hike took the 10-year Treasury yield to a two-year high.
The tech-rich Nasdaq Composite fell 2.7% before ending slightly higher as yields retreated from their highs. The S&P 500 slipped 0.1% and the Dow Jones fell half a percent.
European stocks ended Monday’s session lower amid Omicron concerns and the rate hike. The pan-European Stoxx 600 lost 1.5 percent.
The German DAX lost 1.1 percent, the French CAC 40 index fell 1.4 percent and the UK FTSE 100 lost half a percent.
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