Indian indices are likely to open on a flat note on Wednesday as global markets recovered on easing tensions between Russia and Ukraine. At 8:30 am, the SGX Nifty was trading 13 points or 0.1 percent lower at 17,389, indicating a flat-to-negative start for the Indian markets.
Indian indices witnessed a steep recovery, ending over 3 percent higher on Tuesday after facing an over 4 percent loss in the previous 2 sessions. The sharp rebound came as losses in global markets trimmed and crude oil prices declined on reports that Russian foreign minister Sergei Lavrov said there was "always a chance" for agreement with the West on the Ukraine crisis.
The Sensex ended 1,736 points higher at 58,142 while the Nifty rallied 509 points to settle at 17,352. Broader markets also recovered with the midcap and smallcap indices advancing over 2.5 percent each.
Let's take a look at some key market cues before the market opens today:
The US stock markets closed higher on Tuesday on the expectation that the Ukraine tensions might subside, as Russia said some troops near Ukraine's borders would begin returning to their bases. Wall Street indices S&P 500 rose 1.6 percent, Dow Jones surged nearly 1.2 percent, while tech-heavy Nasdaq gained 2.5 percent after witnessing a fall on the previous day.
Asian markets rose as fears of a Russian invasion of Ukraine dissipated. Moscow indicated it was returning some troops to base from exercises. MSCI's broadest index of Asia Pacific shares was up one percent at the last count. Japan's Nikkei 225 gained 2.1 percent, China's Shanghai Composite was up 0.8 percent and Hong Kong's Hang Seng added 1.1 percent.
Oil prices tumbled more than 3% as they retreated from a seven-year high. U.S. crude futures fell $3.39 to settle at $92.07 a barrel, while Brent futures settled down $3.20 at $93.28 a barrel.
At 8:30 am, the SGX Nifty was trading 13 points or 0.1 percent lower at 17,389, indicating a flat-to-negative start for the Indian markets.
The rupee snapped its four-day losing streak to close 29 paise higher at 75.31 (provisional) against the US dollar on Tuesday, tracking a recovery in domestic equities and weakness of the American currency overseas.
Gold prices slipped on Wednesday, pulling further away from an eight-month peak scaled in the previous session, as signs of a slight de-escalation in the Russia-Ukraine standoff diminished the appeal of safe-havens. US gold futures dropped 0.2 percent to $1,852.40.
Vedant Fashions listing
Vedant Fashions shares are set to make a debut on stock exchanges BSE and NSE at 10 am. The IPO of Vedant Fashions, which owns brands such as Manyavar and Mohey, was open for subscription from February 4-8, and subscribed 2.6 times.
U.S. President Joe Biden made an impassioned appeal to Russian President Vladimir Putin to step back from war with Ukraine on Tuesday, speaking starkly of the "needless death and destruction" Moscow could cause and international outrage Putin would face.
Stocks in News
Tech Mahindra, Balkrishna Industries, Cipla, IDBI Bank, Vedant Fashions are some stocks that will be in news today.