The Indian equity market is likely to open lower amid weak global cues. The SGX Nifty closed at around 17,200, down 200 points. Nifty Futures Thursday close suggests a gap down opening for the markets. Global equities tumbled following hawkish remarks from Federal Reserve Chair Jerome Powell hinting at a a half-point rate hike possible next month in a bid to curb inflation.
Powell, speaking at a panel hosted by the International Monetary Fund on Thursday said that a 50-basis point rate increase was “on the table” for the US central bank’s next policy meeting in May. Wall Street surrendered all gains to end lower overnight. Equities in Asia Pacific also edged lower during the morning trade, tracking cues from the US markets.
Volatility to remain
According to Mitul Shah, Head of Research at Reliance Securities, persisting inflationary pressures and news on the Russia-Ukraine war augmented the markets' volatility. As per Shah, moving forward, the trend in global markets, the movement of rupee against the dollar and crude oil prices will continue to influence the equity markets.
Treasury yields resumed the upward climb on Thursday. Oil prices also rose on Thursday, amid concerns about tightened supply with the European Union (EU) mulling a potential ban on Russian oil imports. Brent crude futures closed at $108.33 a barrel.
FII continue selling
Meanwhile, Foreign institutional investors (FIIs) net sold shares worth ₹713.69 crore, while domestic institutional investors (DIIs) have net bought shares worth ₹2,823.43 crore on April 21, as per NSE data.
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