Market may open higher
Published on Jul 28, 2021 08:11
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 27 points at the opening bell.
Overseas, Asian stocks are trading lower on Wednesday, with stocks in Hong Kong struggling to recover from a two-day rout.
U.S. stocks fell for the first time in six days on Tuesday ahead of quarterly earnings reports from several megacap technology companies.
Investors are awaiting the Federal Reserve`s update on its monetary policy as the central bank`s two-day meeting began. The Federal Open Market Committee will release a statement when the meeting concludes Wednesday, followed by Chairman Jerome Powell`s news conference.
The International Monetary Fund warned Tuesday that there`s a risk inflation will prove to be more than just transitory, pushing central banks to take pre-emptive action.
Meanwhile, the International Monetary Fund (IMF), on July 27, cut India`s gross domestic product (GDP) growth forecast to 9.5% for fiscal year 2021-22, from the previous forecast of 12.5%, citing the hit on economic activity and demand due to the deadly `second wave` of the COVID-19 pandemic. For fiscal year 2022-23, however, IMF expects economic growth of 8.5%, larger than the 6.9% it had projected in April.
"Growth prospects in India have been downgraded following the severe second COVID wave during March-May and expected slow recovery in confidence from that setback," the multilateral institution said in its latest World Economic Outlook report.
Back home, the key benchmark indices ended lower for the second consecutive session yesterday, 27 July 2021, dragged by the weak global stocks. The barometer index, the S&P BSE Sensex, fell 273.51 points or 0.52% to 52,578.27. The Nifty 50 index lost 78 points or 0.49% to 15,746.45.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,459.08 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 729.96 crore in the Indian equity market on 27 July, provisional data showed.
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