The Indian stock market is expected to open on a slightly positive note on Wednesday, with global markets showing signs of optimism. Asian shares were cautious, with investors awaiting the interest rate announcements and commentary from the Federal Reserve.
The Gift Nifty futures indicated a positive opening for the Indian benchmark index, with Gift Nifty trading above Nifty 50’s previous close. However, broader trends suggested a muted start for the Indian markets.
On Tuesday, the Indian stock market witnessed a significant decline, with the Sensex and Nifty 50 both falling over 1%. The Nifty slipped below the critical support level of 21,900, leading to concerns of a potential further decline of 200-300 points.
Global stocks were also in a wait-and-watch mode, with Asian shares showing hesitancy ahead of the Federal Reserve’s interest rate decision. The yen hit a fresh four-month low against the dollar, while markets in Japan were closed for a holiday.
Investors are closely monitoring the Federal Reserve’s policy meeting outcome, with expectations that the central bank may signal a slower path of rate cuts this year. The Bank of Japan’s decision to end negative interest rates has also impacted market sentiment.
Overall, the market is cautiously optimistic, with a focus on central bank decisions and economic indicators. Oil prices retreated from multi-month highs, while gold prices remained steady. The global economic landscape continues to influence market movements, and investors are closely watching for any policy shifts.
