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Weak opening on the cards on subdued global cues

Published on May 24, 2023 08:33

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 79 points at the opening bell.

Global markets:

Overseas, Asian stocks fell for a second day as negotiations over raising the US debt ceiling remained at an impasse, sapping risk sentiment.

New Zealand`s central bank increased interest rates by 0.25 percentage points on Wednesday, maintaining its hawkish position. The Reserve Bank of New Zealand raised the official cash rate to 5.5%, the highest since October 2008. It also warned that an economic contraction this year was possible.

US stock market ended lower Tuesday amid growing worries over raising the debt limit after another round of talks between White House officials and Congressional Republicans ended without a conclusion.

US debt negotiations continued but progress appeared limited, with some House Republicans questioning the urgency of a deadline imposed by Treasury Secretary Janet Yellen for when the government will start missing debt payments.

Investors will keep an eye on the minutes of the meeting of Federal`s Reserve on May 2-3 that are due to be released on Wednesday. Minutes will offer traders the latest insights into whether interest rates will be paused at the Fed`s June gathering.

Domestic markets:

Back home, the key equity indices ended with minor gains on Tuesday, rising for the third consecutive trading session. The barometer index the S&P BSE Sensex rose 18.11 points or 0.03% to 61,981.79. The Nifty 50 index added 33.60 points or 0.18% to 18,348.

Foreign portfolio investors (FPIs) bought shares worth Rs 182.51 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 397.29 crore in the Indian equity market on 23 May, provisional data showed.

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