Comments
Indian markets are likely to open in a narrow range with a negative bias, amid mixed global cues. While the US stocks closed in the red overnight, most Asian stocks are ruling flat in early deal on Wednesday. SGX Nifty at 17,325 indicates Nifty futures is likely to open moderately down. Nifty December futures on Tuesday closed at 17,355.
Global markets continued to remain mixed as investors remains cautious about the economic risks posed by potentially reduced central bank support and the omicron Covid-19 variant.
Inflation worries, continuous FPI selling and falling rupee are keeping marketmen on the edge, said analysts.
According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, The US Federal Reserve is scheduled to announce its latest interest-rate decision on Wednesday, followed by the European Central Bank (ECB) and the Bank of England on Thursday. Global oil markets have returned to surplus and face an even bigger oversupply early next year as the omicron variant impedes international travel, as per the International Energy Agency.
Ajit Mishra, VP - Research, Religare Broking Ltd, said, “Markets consolidated in a range. Participants are maintaining a cautious stance ahead of the US Fed meeting outcome, which is scheduled on December 15 and we may see a similar trend on Wednesday as well. On the benchmark front, a decisive fall below 17,150 in Nifty would further fuel the negative bias. We reiterate our view to limit leveraged positions and maintain positions on both sides”.
WPI inflation
The whole sale price inflation data for November has risen over 14 per cent and the WPI core inflation has came in at 12.2 per cent. “The rise in the WPI is primarily due to the high food, vegetables, and primary goods inflation. The fuel price inflation is likely to cool off due to a cut in excise duty. The rise in WPI is likely to have a further effect on industrials, but no impact on RBI policy as it has stated that economic recovery is the priority right now,” said DRE Reddy, CEO and Managing Partner, CRCL LLP.
The WPI print for Nov-21 clearly highlights the underlying inflationary pressures in the economy that is not apparent in the headline CPI print, said Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.