Indices headed for weak start
Published on May 31, 2023 08:40
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 72 points at the opening bell.
Overseas, Asian stocks are trading lower on Wednesday, led lower by declines in Hong Kong as weakening factory activity in China dented sentiment that was already damped by the risk of a US debt default.
China`s official measure of factory activity for May slid for a second-straight month in May to 48.8, a steeper contraction than March`s 49.2.
US stocks ended mixed on Tuesday as Wall Street considered the likelihood of Congress passing a tentative deal on raising the U.S. debt ceiling amid growing opposition within the GOP.
The U.S. debt ceiling remained in focus with markets hoping an agreement President Joe Biden struck with the top congressional Republican to suspend the United States` borrowing limit can pass through Congress in coming days. The plan cleared a House committee overnight and is set for debate and passage on Wednesday, which would send it to the Senate where debate could stretch to the weekend.
Fed Bank of Richmond President Thomas Barkin said he is looking for signs that demand is cooling to be convinced that US inflation will ease.
Back home, the domestic equity benchmarks ended with decent gains on Tuesday, rising for the fourth trading session. The barometer index, the S&P BSE Sensex advanced 122.75 points or 0.20% to 62,969.13. The Nifty 50 index added 35.20 points or 0.19% to 18,633.85.
Foreign portfolio investors (FPIs) bought shares worth Rs 2,085.62 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 438.93 crore in the Indian equity market on 30 May, provisional data showed.
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