Sensex, Nifty Set To Rebound As Wall Street Climbs
(RTTNews) - Indian shares look set to open on a positive note Wednesday on optimism of contagion risk from Silicon Valley Bank being contained and bets on a smaller interest-rate hike by the Fed next week.
Benchmark indexes Sensex and Nifty fell around 0.6 percent each on Tuesday to extend losses for a fourth consecutive session, while the rupee fell by 23 paise to close at 82.49 against the dollar amidst fears of contagion from the collapse of Silicon Valley Bank and Signature Bank.
Asian markets traded mostly higher this morning, with tech-heavy Kospi and Hang Seng indexes leading regional gains.
The dollar found some support and gold held above $1,900 per ounce while oil prices rose more than 1 percent after OPEC upgraded its Chinese demand outlook.
U.S. stocks rallied overnight, with banks leading the surge after regulators assured that there won't be a relapse of the financial crisis from 15 years ago.
Data showed inflation eased slightly last month, helping offset recent concerns about the outlook for interest rates ahead of next week's FOMC meeting.
The Dow gained 1.1 percent to snap a five-day losing streak, while the S&P 500 climbed 1.7 percent and the tech-heavy Nasdaq Composite jumped 2.1 percent.
European stocks also closed on a buoyant note Tuesday as concerns about wider contagion in the financial system eased.
The pan European STOXX 600 rallied 1.5 percent. The German DAX surged 1.8 percent, France's CAC 40 index surged 1.8 percent and the U.K.'s FTSE 100 added 1.2 percent.
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