Indian equities are anticipated to open with little movement on Wednesday as market participants await the Federal Reserve's final interest rate decision for the year. Today marks the listing of Vishal Mega Mart, Mobikwik, and Sai Life Sciences on the stock exchanges.
On Tuesday, the benchmark indices Sensex and Nifty decreased approximately 1.3% each, driven by concerns regarding Foreign Portfolio Investors (FPIs) reallocating funds from Indian markets. Meanwhile, the rupee saw a minor appreciation, closing 1 paisa higher at 84.90 against the U.S. dollar.
In Asia, stocks were mostly on the rise this morning in anticipation of rate decisions by both the Federal Reserve and the Bank of Japan (BoJ). The U.S. central bank is widely expected to implement a 25 basis point interest rate cut today. However, greater attention will be on the release of the Summary of Economic Projections, which will include the Fed's dot plot.
The Bank of Japan is expected to maintain its benchmark interest rate at its Thursday meeting, as it monitors domestic wage and spending trends and awaits policy developments from U.S. President-elect Donald Trump.
In Asian trading, the U.S. dollar remained steady against the yen and other major currencies, while gold experienced a slight increase. Oil prices showed mixed movements following a two-day decline, influenced by industry data indicating a significant reduction in U.S. commercial crude inventories.
In the U.S., stock markets closed lower overnight. Data revealing stronger-than-anticipated retail sales growth for November has fueled the ongoing debate about the Federal Reserve's policy direction for 2025. The Dow Jones Industrial Average fell 0.6%, marking its ninth consecutive decline, the longest streak since 1978. Meanwhile, the tech-heavy Nasdaq Composite lost 0.3%, and the S&P 500 decreased by 0.4%.
European markets also experienced widespread losses on Tuesday amid political turbulence in Germany and France. The pan-European STOXX 600 dropped by 0.4%, while Germany's DAX fell 0.3%, and the U.K.'s FTSE 100 declined by 0.8%. In contrast, France's CAC 40 managed to rise slightly by 0.1%.
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