Benchmark Indices are expected to open on a cautious note on account of global cues and trend suggested by SGX Nifty. An across-the-board buying lifted benchmarks to new lifetime highs in Tuesday's session where the S&P BSE Sensex touched 52,869.5 levels while the Nifty50 index surpassed the 15,900-mark to quote at 15,902, said Mohit Nigam, Head-PMS, Hem Securities.
The Nifty futures were trading at 15,841 on the Singaporean Exchange.
At 09:01 AM, the Sensex was up 13.33 points or 0.03 percent at 52786.38. The Nifty was down 33.20 points or 0.21 percent at 15836.10.
The Dow Jones Industrial Average fell 99.42 points or 0.27 percent, the S&P 500 lost 8.56 points or 0.20 percent and the Nasdaq Composite dropped 101.29 points or 0.71 percent.
FIIs were net buyers Rs 634 crore while DIIs were net sellers Rs 649 crore in Wednesday’s session.
Active COVID-19 cases stood just above 9 lakhs in India as the daily infection rate continued to ease in a country battling the world’s second worst outbreak which will help in continuing positive momentum in the market.
Asian markets struggle
Asian markets struggled for direction in Wednesday morning trade as investors looked ahead to data releases in China as well as the US Federal Reserve's interest decision. In Japan, the Nikkei slipped 0.27 percent while the Topix index gained 0.17 percent.
Owing to a severe low base effect, India's merchandise trade shot up by a massive 69.7 percent in May. Exports had risen by 169.33 percent in April and 60 percent in March. Data releaased by the Commerce and Industry Ministry on June 15 showed outbound trade rose to $32.27 billion in May from $19.05 billion in May 2020. In May 2020, exports had declined by 36.47 percent.
"Retail inflation spike in May might cause the RBI to 'revisit its focus on growth risks' global forecasting firm Oxford Economics said on Tuesday adding that a rate hike is still unlikely this year.
Companies announcing quarterly results
Key companies announcing their quarterly results today includes RITES, Asahi India Glass, CESC, Commercial Syn Bags, DIC India, Kakatiya Cement Sugar. Immediate support and resistance for Nifty 50 are 15,800 and 16000 respectively. US Fed meeting commentary is going to be the key factor deciding the direction of the market in the short term.