Key Things To Know Before Market Opens On Wednesday

The Indian equity benchmarks are likely to open slightly lower on Wednesday on account of profit booking after yesterday's sharp rally, as indicated by the Nifty Futures traded on the Singapore Exchange. The Nifty Futures of Singapore Exchange also known as SGX Nifty Futures fell 32 points or 0.2 per cent to 15,590.

On Tuesday, the Indian equity benchmarks staged their biggest single-day rally of the current month. The Sensex rose as much as 1,201 points and Nifty 50 index touched an intraday high of 15,707 led by gains in Reliance Industries, Infosys, Tata Consultancy Services, ICICI Bank, HDFC and State Bank of India

Here are key things to know before market opens on Wednesday:

Asia Markets

Most of the Asian markets were trading lower with Japan's Nikkei down 0.05 per cent, Hong Kong's Hang Seng fell 0.77 per cent, Taiwan Weighted declined 1.08 per cent and South Korea's KOSPI dropped 1.6 per cent.

US Markets

Stocks finished broadly higher on Wall Street Tuesday, clawing back some of the ground they lost in their worst weekly drop since the beginning of the pandemic.

The rally to start the holiday-shortened week came as investors look ahead to what Federal Reserve Chair Jerome Powell will tell Congress on Wednesday, the first of two days of testimony as part of the central bank’s semi-annual monetary policy report. Last week, the Fed hiked its key short-term interest rate by the most since 1994, the central bank’s latest effort to tame the worst inflation in 40 years.

The S&P 500 rose 2.4 per cent. It’s still 21.5 per cent below the record high it set in January. The tech-heavy Nasdaq climbed 2.5 per cent and the Dow Jones Industrial Average added 2.1 per cent.

Crude Oil and Gold Price Check

Benchmark U.S. crude oil for July delivery rose $1.09 to $110.65 a barrel Tuesday. Brent crude for August delivery rose 52 cents to $114.65 a barrel.

Gold for August delivery fell $1.80 to $1,838.80 an ounce. Silver for July delivery rose 18 cents to $21.77 an ounce and July copper rose 3 cents to $4.04 a pound.

Foreign Flows

Foreign institutional investors sold shares worth Rs 2,701 crore on Tuesday while domestic institutional investors bought shares worth Rs 3,066 crore. FIIs have so far this year sold shares worth Rs 2,07,195 crore, data from NSDL showed.

Rupee Check

Snapping its three-day rising streak, the rupee declined 15 paise to close at 78.13 against the US dollar on Tuesday as persistent foreign fund outflows and a jump in crude oil prices weighed on investor sentiment.

At the interbank foreign exchange market, the local currency opened at 78.00 and traded in a narrow range. It finally ended at 78.13, down 15 paise over its previous close of 77.98.

Stocks In Focus

PVR: Multiplex operator PVR on Tuesday announced an "expanded preferred partnership agreement" with laser cinema solutions provider Cinionic to power its 500 screens with Barco Series 4 4K laser projection.

Inox Leisure: Multiplex operators PVR and INOX Leisure on Tuesday said that they have received clearances for their merger from bourses NSE and BSE.

"The company has received observation letter with 'no adverse observations' dated June 20, 2022 from BSE Ltd and observation letter with 'no objection' dated June 21, 2022 from National Stock Exchange of India Ltd respectively in relation to the scheme of amalgamation," said PVR in a regulatory filing.

HDFC Bank: HDFC Bank proposes to double its network of branches in the next three to five years by adding 1,500 to 2,000 branches annually, which would akin to adding a new HDFC Bank every five years, said its managing director and CEO Sashidhar Jagdishan.

Jain Irrigation: Jain Irrigation Systems Ltd on Tuesday said its global irrigation business will be merged with Temasek-owned Rivulis in a cash-and-stock deal, a move that will help the company reduce its consolidated debt by Rs 2,700 crore or around 45 per cent.

Hero MotCorp: Two-wheeler maker Hero MotoCorp has further strengthened its operations in Turkiye with the launch of Euro-5 compliant variants of its three vehicles in the country, the company said on Tuesday.

The company's product range in Turkiye, where it is present since 2014, includes the Xpulse 200 motorcycle, Dash 110 and Dash 125 scooters, which are sold through a network of over 100 touchpoints.

Yes Bank: At a time when concerns are being raised about lenders delaying deposit rate hikes amid the overall rate increases, Yes Bank on Tuesday introduced a product where the interest earned on a term deposit is linked to the RBI's repo rate.

Till now, an external benchmark-linked rate has been popular on the lending side, but the same was not the case for deposits. The RBI has hiked rates by 0.90 per cent in two moves and is expected to do more to contain inflation.