A day after Indian equity markets witnessed heavy selling pressure, benchmark indices are likely to open marginally higher on Wednesday. However, sentiment remains cautious as global cues continue to stay
weak amid escalating geopolitical tensions.
The early indicator of market direction, GIFT Nifty, was trading 0.05 percent higher at around 8:00 AM.
Trading on Dalal Street is expected to remain stock-specific with the Q3 earnings season in full swing. Companies such as Eternal, Dr Reddy’s Laboratories, Hindustan Petroleum and PNB Housing Finance are scheduled to announce their quarterly results today.
Global cues
Asian markets extended their losses on Wednesday, weighed down by renewed geopolitical concerns after the US President issued fresh warnings to European nations over the Greenland issue. Japan’s Nikkei slipped 0.35 percent after government bond yields rebounded, a day after a sharp selloff.
Trump has imposed a 10 percent tariff on eight European countries, effective February 1, with the rate set to rise to 25 percent in June, after they opposed his plans to acquire Greenland.
Overnight, Wall Street recorded its worst session since April last year, according to Bloomberg, with market volatility touching its highest level since November. Both the S&P 500 and the Nasdaq ended more than 2 percent lower.
The spotlight this week remains on the World Economic Forum in Davos, where global leaders have raised concerns over the dominance of “superpowers”. Canadian Prime Minister Mark Carney, in a key address, said the “rules-based international order” is effectively dead.
