The Indian market is set for a positive start on Wednesday despite a plunge in Wall Street on Christmas eve after US President Donald Trump hit out at the US Federal Reserve.
At 07:23 AM, SGX Nifty, an early indicator of the Nifty 50's trend in India, was up 0.20 percent at 10,647, indicating a positive opening for the Indian market.
The markets were closed on Tuesday on account of Christmas.
Here's what you need to know before the market opens:
Asia: Asian equities were shaky on Wednesday following the plunge in Wall Street on Christmas eve in the face of a series of unnerving US political developments, including a US federal government shutdown and President Donald Trump’s increasingly hostile stance toward the Federal Reserve chairman.
Oil: In commodities, US crude futures were up 1.35 percent at $43.11 per barrel after tumbling 6.7 percent on Monday. Oil prices plunged to the lowest level in more than a year on Monday, as bearish stocks added to fears of an economic slowdown.
Wall Street: US stocks have dropped sharply in recent weeks on concerns over weaker economic growth. Trump has largely laid the blame for economic headwinds on the Fed, openly criticizing its chairman, Jerome Powell, whom he appointed. That has further rattled investors as they grappled with fears of slowing global growth, corporate earnings and US-China trade tensions. In an effort to reassure investors, Treasury Secretary Mnuchin spoke on Sunday with the heads of the six largest US banks, who confirmed they have enough liquidity to continue lending and that “the markets continue to function properly.”
Rupee: The rupee closed at 70.14 against the US dollar on Monday.
Bank strike: Services of state-owned banks are expected to be impacted on Wednesday due to a nation-wide strike call given by unions to protest against the proposed amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda. This will be the second bank strike in less than a week.
Dollar: The dollar was broadly lower on Wednesday, pressured by a cocktail of negative factors including heightened concerns over the partial US government shutdown and tension between the White House and the Federal Reserve. Fears of a US and global economic slowdown have sent US 10-year yields tumbling by around 25 basis points in December, adding to the increasing strain on the dollar and further darkening its outlook.
Market close: The broader Nifty closed 0.84 percent lower at 10,663.50 on Monday, while the benchmark Sensex ended down 0.76 percent at 35,470.15. Both indexes posted their worst closing levels since December 11.
Trump on US Fed: President Donald Trump on Tuesday reiterated that the US Federal Reserve was raising interest rates too quickly but added that US companies were "the greatest in the world" and presented a "tremendous" buying opportunity for investors. "They're raising interest rates too fast because they think the economy is so good. But I think that they will get it pretty soon," Trump told reporters in the Oval Office, referring to the US central bank.
FM Arun Jaitley on inheritance tax: Hospitals, universities and other institutions in developed countries receive large endowments due to factors like inheritance tax, which is not the case in India, finance minister Arun Jaitley said on Tuesday. Analysing the means of funding for India's healthcare and educational bodies as against the global ways, Jaitley said such institutions in the country receive donations from religious groups and Corporate Social Responsibility (CSR) programmes.
Iranian President on US Sanctions: Iran’s President Hassan Rouhani on Tuesday presented a $47 billion state budget with increased spending on lower income groups, saying US sanctions would affect people’s lives and economic growth but not bring the government to its knees. US President Donald Trump pulled the United States out of a multilateral nuclear deal with Iran in May and reimposed sanctions on it, including on its vital oil industry.(With inputs from agencies)