The Indian headline indices are likely to open lower on Wednesday morning on the back of weak global markets. Asian markets slumped over escalating trade tensions between the world’s two largest economies- the US and China. The SGX Nifty ended lower at 11,914.50 level, 14.50 points down from the last close. Yesterday, the Indian stock markets closed marginally higher. While Sensex closed up 66 points at 39,750, the Nifty50 ended at a level of 11,941, higher by 16 points from the previous close. We take a close look at key things which will drive the share market today:
US-China trade war: The escalating trade tensions between the two economic giants the US and China are likely to last longer. US President Donald Trump on Monday said the US was not ready to make a deal with China and the trade tariffs might go up substantially. However, he also said that he expected a deal in future. The yield on the benchmark 10-year Treasury note, tumbled to a 19-month low on Tuesday as Wall Street feared that the U.S.-China trade would last longer and adversely affect the GDP growth.
FII & DII: On Tuesday, while foreign institutional investors (FIIs) sold shares worth Rs 501 crore on a net basis, the domestic institutional investors (DIIs) bought shares worth Rs 269 crore, according to NSE data.
Rupee Movement: The Indian currency on Tuesday settled at 69.68 per dollar, down 0.25 per cent from the previous close of 69.51 a dollar. Yesterday, it had opened at 69.65 a dollar. The rupee came under pressure amid rising trade tensions between the two superpower economies- the US and China.
Crude oil prices: The crude oil prices surged on Tuesday amid supply concerns and rising trade worries between US and China. Last week both Brent crude and US WTI fell by 4.5 per cent and 6.4 per cent respectively. The international benchmark for oil was last seen at $69.62 a barrel, 49 cents lower from the previous close, while the US WTI was at $58.53 a barrel, 61 cents down from the last close.