Live Market: Possible to gap down 150 pips amid weak global sentiment

Live stock market updates: Major indices are likely to start Wednesday’s session on a negative note that follows weak global signals after a US Federal Reserve official indicated on Tuesday that the central bank will take a more aggressive approach to tightening liquidity.

At 8:00 am, SGX Nifty futures were around 17,843 levels, which indicates the beginning of a downside gap of 170 single pips for Nifty50.
US Federal Reserve Governor Lyle Brainard said the central bank will start cutting its balance sheet at a faster pace and could start as early as next month. Brainard’s comments soured investor sentiment as US stocks closed lower.

Moreover, investors are also cautious before an additional set of sanctions is imposed on Russia by the European Union, which is said to have proposed a ban on Russian coal.

Back home, the Reserve Bank of India (RBI) will start its 3-day monetary policy meeting today, which could keep markets choppy.

Among the stocks, airlines will be in focus as the government has begun discussions with them on removing airfare price ranges. Read it here

global signals

On Tuesday, Brainard’s comments sent US stocks and Treasury yields lower. The Nasdaq index led the decline, losing 2.26 percent. The Dow Jones Index lost 0.8 percent, and the Standard & Poor’s 500 Index fell 1.26 percent. The 10-year bond yield was 2.56 percent, the highest since May 2019.

Brent crude fell 1.8 percent to $105.6 a barrel, while West Texas Intermediate crude fell 1.3 percent to $101.9 a barrel.

All Asian markets were in the red in morning trading, with the Hang Seng and Nikkei indices down 1.6 and 1.3 percent, respectively. Shares of Street Times and Cosby fell 0.6 percent. Shenzhen Component and Shanghai Composite both fell 0.45 percent.

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