The Indian equity market is likely to open flat amid mixed global cues on Tuesday. SGX Nifty at around 17,270 indicates a start in the green for the Indian market. Asian markets were in the green while US equities closed lower overnight, remaining little changed at the end of a choppy session. Investors remained concerned owing to rising treasury yields and the possibility of faster policy tightening by the Federal Reserve.
The Dow Jones Industrial Average ended 0.11 per cent lower while the S&P 500 was down 0.02 per cent.
St. Louis Federal Reserve Bank President James Bullard in his speech on Monday said that US inflation is “far too high,” repeating his case for increasing interest rates to 3.5 per cent by the end of the year in a bid to slow down inflation readings, which are currently at a 40-year-high.
Asian equities edged higher during the morning trade on Tuesday morning as investors watched for market reaction to China’s central bank announcing financial support for sectors impacted by the Covid-19 pandemic sectors amid rising cases and lockdown.
Volatility expected to continue in near term
A surge in energy prices, fresh worries about Covid, rising inflation, and continued geopolitical tension have been impacting investor sentiments.
Ajit Mishra, VP - Research, Religare Broking Ltd said, “We believe global cues as well as the outcome of Q4 earnings will continue to add volatility in the coming sessions.”
As per Santosh Meena, Head of Research, Swastika Investmart Ltd, “The stock-specific movement will be continued amid earning season while global cues, commodity prices, and FIIs’ behavior will be important factors to drive the market.”
Foreign institutional investors (FIIs) net sold shares worth ₹6,387.45 crore, while domestic institutional investors (DIIs) net purchased shares worth ₹3,341.96 crore on April 18, as per NSE provisional data.