Before Market Opens: 9 things to know at 9 am on May 3, 2023

Major U.S. stock indexes fell more than 1% each on Tuesday as regional bank shares tumbled on renewed fears over the financial system and as investors tried to gauge how much longer the Federal Reserve may need to hike interest rates. The Fed is expected to announce Wednesday it will raise rates 25 basis points. The Dow Jones Industrial Average fell 367.17 points, or 1.08%, to 33,684.53; the S&P 500 lost 48.29 points, or 1.16%, at 4,119.58; and the Nasdaq Composite dropped 132.09 points, or 1.08%, to 12,080.51.

Asia-Pacific markets were largely mixed on Tuesday as most markets returned after the long Labor Day weekend. Japan’s Nikkei 225 advanced 0.12 percent to close at 29,157.95 and the Topix fell 0.12 percent to end the day at 2,075.53. South Korea’s Kospi closed 0.91 percent up at 2,524.39 as the nation’s inflation rate slowed to a 14-month low of 3.7 percent. The Kosdaq climbed 1.52 percent and closed at 855.61. Hong Kong’s Hang Seng index climbed 0.22 percent in its final hour of trade, while the Hang Seng Tech index gained marginally. Mainland Chinese markets were closed for a holiday Tuesday.

At 8:20 am, the SGX Nifty was trading 80 points or 0.44 percent lower at 18,140, indicating a weak opening for the Indian markets. 

Equity benchmarks ended higher on Tuesday mainly due to buying in index heavyweights Infosys and Reliance Industries amid foreign fund inflows. Also, a firm trend in Asian gauges and record GST collection in April added to the optimism. Rallying for the eighth straight day, the 30-share BSE Sensex climbed 242.27 points or 0.40 percent to settle at 61,354.71. The broader NSE Nifty went up 82.65 points or 0.46 per cent to finish at 18,147.65.

Oil prices sank about 5 percent to a five-week low on Tuesday on concerns about the economy as U.S. politicians discuss ways to avoid a debt default and investors prepare for more rate hikes this week. Brent futures fell $3.99, or 5 percent, to settle at $75.32 a barrel, while West Texas Intermediate crude (WTI) fell $4.00, or 5.3 percent, to end at $71.66.

Titan, Adani Wilmar, MRF, Havells, Godrej Properties and other companies are likely to announce their March quarter results today.

Gold extended gains on Tuesday and was on track for its biggest daily rise in a month, as yields dropped on renewed fears of contagion in the US banking sector, ahead of the Federal Reserve’s widely anticipated decision to hike interest rates. Spot gold jumped 1.8 percent to its highest since April 14 at $2,016.71 per ounce, while US gold futures rose 1.7 percent to $2,026.20.

Foreign institutional investors (FII) bought shares worth ₹1,997.35 crore, whereas domestic institutional investors (DII) sold shares worth ₹394.05 crore on May 2, provisional data from the National Stock Exchange showed.

The rupee consolidated in a narrow range and settled 6 paise lower at 81.88 (provisional) against the American currency on Tuesday as investors preferred to stay on the sidelines ahead of the US Fed meeting outcome.