Indian Markets Expected to Open Lower Amid Fed Decision and Rising Oil Prices
The Indian stock market may start lower on Wednesday as investors await the U.S. Federal Reserve's policy decision, while Asian markets rise and Jio Platforms prepares for its IPO debut.
Indian equities are likely to open lower on Wednesday, with traders exercising caution ahead of the U.S. Federal Reserve's upcoming policy decision and monitoring higher crude oil prices and Middle-East geopolitical tensions. The pre-market Gift Nifty was around 22,637, about 206 points below the previous Nifty futures close, indicating a negative tone for the Nifty 50 and Sensex, which had ended flat near 22,750 in the prior session.
Asian markets traded higher, buoyed by a Wall Street rally in AI-related stocks. Japan's Nikkei 225 rose 1.36%, the Topix gained 0.30%, South Korea's Kospi jumped 5.07% and the Kosdaq advanced 3.29%, while Hong Kong Hang Seng futures pointed to a positive start.
In the United States, the Dow Jones edged up 0.03% to 52,377.57, the S&P 500 climbed 0.60% to 7,722.60, and the Nasdaq Composite rose 1.18% to 26,477.81, driven by gains in AI-focused technology shares.
"Jio Platforms shares are set to make their stock market debut today," a company spokesperson said, noting that the Reliance Industries subsidiary will list on the NSE and BSE after a Rs 30,213-crore IPO that attracted strong demand.
Crude oil prices increased, with Brent crude futures up 1.26% to $115.32 a barrel and U.S. West Texas Intermediate at $101.08, reflecting reports of U.S. planning for a new military operation against Iran. Gold steadied above $4,000 an ounce, with spot gold at $4,063.80 and silver at $54.41, as investors positioned ahead of the Fed's rate decision.