FX.co ★ Sensex, Nifty Set To Fall Amid Global Selloff

Indian stock markets are expected to open significantly lower on Wednesday, amid reduced expectations of an interest rate cut from the US Federal Reserve before July. The collective value of the Dollar has risen against major worldwide currencies, and Treasury yields have surged. This comes as a result of recent US Consumer Price Index (CPI) data that decreases the likelihood of a near term Fed rate cut.

Adani Group's stocks may well gain attention today, following Moody's decision to upgrade the ratings of four enterprises within the Group. India’s primary market indexes - the Sensex and the Nifty - experienced growth of 0.7% and 0.6% respectively on Tuesday, driven by reassuring retail inflation and industrial output data. The value of the Rupee remained steady, at 83 to the Dollar.

Asian markets witnessed sharp declines, and the price of gold decreased to below $2000 per ounce. The cost of oil also fell slightly, this being the first time since a fortnight ago, in the wake of data revealing a significant increase in US crude oil stockpiles.

Overnight, US stocks experienced significant losses whilst Treasury yields soared, in the wake of hotter-than-predicted inflation data for January, which effectively squashed hopes for early, aggressive Fed rate cuts this year.

The data indicated a slowdown in annual consumer price growth, from 3.4% in December to 3.1% in January. This went against economists' predictions, which had pegged the growth slowdown at 2.9%. The annual core consumer price rate for January remained stable at 3.9%, compared to predictions which had forecast a drop to 3.7%.

Both the Dow Jones and S&P 500 experienced a downturn of approximately 1.4%, whilst the Nasdaq Composite, driven by technology-based companies, dropped by as much as 1.8%.

European stocks ended Tuesday on a low note, as investors cautiously evaluated regional economic figures, a range of corporate earnings, and the greater-than-anticipated US CPI data. The pan-European STOXX 600 fell by 1%, Germany's DAX by 0.9%, whilst France's CAC 40 and the UK's FTSE 100 both saw reductions of around 0.8%.