Indian equities are likely to open flat on concerns over the Chinese economy and US interest rates
The new logo of the Bombay Stock Exchange (BSE) building is seen in Mumbai, India, on July 12, 2023. REUTERS/Francis Mascarenhas/File Photo acquire license rights
BENGALURU, Aug 22 (Reuters) – Indian equities are expected to open on Tuesday on a muted note on risk aversion amid ongoing concerns over the health of the Chinese economy and US interest rates.
India’s GIFT Nifty on the NSE International Exchange was up 0.03% at 19,395 as of 8:05 am IST.
The Nifty 50 (.NSEI) and Sensex (.BSESN) were higher on Monday, as a rebound in information technology (IT) and financials stocks outweighed a decline in Reliance Industries after spin-off Jio Financial’s weak market debut.
Analysts expect the market to see further consolidation due to weak macroeconomic conditions and volatility in global markets.
Asian markets edged up Tuesday after falling in the previous session after China cut interest rates less than expected, raising concerns of deflation and an economic recovery.
Wall Street ended mixed overnight with the tech-heavy Nasdaq (.IXIC) gaining over 1.5%, helped by semiconductor company Nvidia (NVDA.O) on its earnings optimism expected on Wednesday.
Investors are now awaiting comments from Federal Reserve Chair Jerome Powell at a meeting of central bankers in Jackson Hole, Wyoming on Friday, for clues the Federal Reserve is tightening monetary policy.
Recent inflation, retail sales and jobs data in the US have raised concerns among investors about a prolonged high-yield regime.
Domestic investors are also awaiting minutes from the Reserve Bank of India’s latest monetary policy meeting, due on Thursday.
Overseas institutional investors were net sellers of Indian stocks on Monday, selling 19.01 billion rupees ($228.8 million), while domestic institutional investors bought shares worth 6.26 billion rupees, according to preliminary data from the National Stock Exchange.
STOCKS TO VIEW:
** Adani Enterprises (ADEL.NS): Top shareholder Kempas Trade and Investment increases its stake in the company from 67.65% to 69.87%.
** Welspun Enterprises (WELS.NS): The company is buying 50.10% stake in Michigan Engineers for Rs.1.37 billion.
** Tata Power (TTPW.NS): Subsidiary Tata Power Renewable Energy signs power purchase agreement for 9 MWp on-campus solar power plant with Tata Motors for a plant in Uttarakhand.
** Brigade Enterprises (BRIG.NS): The Company enters into sale agreement to purchase 6.54 hectares of land in Chennai to develop a residential project.
($1 = 83.0800 Indian Rupees)
Reporting from Bharath Rajeswaran and Manvi Pant in Bengaluru; Edited by Varun HK
Our standards: The Thomson Reuters Trust Principles.
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