Indian shares may follow global peers higher on Wednesday after the U.S. announced a delay in the implementation of tariffs on some Chinese products – essentially calling a temporary and minimal ceasefire in the year-long U.S.-China trade dispute.
That said, concerns over weak auto sales amid sluggish consumer demand, rising oil prices and apprehensions over capital outflows may trigger profit taking at higher levels as the session progresses.
On the earnings front, Coal India reported 22.3 percent rise in consolidated profit for the June quarter. Grasim Industries, Indiabulls Real Estate, IDBI Bank, and Wockhardt are among the prominent companies that will unveil their quarterly earnings results later today.
Banks could be in focus after the finance ministry issued guidelines for providing a one-time credit guarantee to public sector banks for purchase of pooled assets of non-banking financial companies at fair value.
In economic releases, India’s consumer price inflation remained broadly unchanged in July, figures from the statistics ministry showed.
The consumer price index rose 3.15 percent year-on-year after a 3.18 percent increase in June. Economists had forecast inflation to slow marginally to 3.09 percent.
Benchmark indexes Sensex and the Nifty plunged around 1.7 percent on Tuesday while the rupee slumped 62 paise to close at a nearly six-month low of 71.40 against the dollar, reflecting risk-off sentiment globally.
Foreign institutional investors (FIIs) remained net sellers and sold shares worth
Rs. 638.28 crore in the capital markets on Tuesday, according to provisional data released by NSE.
Asian markets bounced back this morning and safe-haven government bonds pulled back amid signs that the U.S.-China trade tensions may be easing. Oil prices erased some gains from the previous session after industry data showed U.S. crude inventories unexpectedly rose last week.
Overnight, U.S. stocks rallied after the Trump administration backed off on imposing tariffs on