Market may open lower on negative global cues

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 73 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading lower Wednesday, following Wall Street's negative lead ahead of the Federal Reserve's expected rate hike.

The Asian Development Bank (ADB) on Wednesday cut its growth forecasts for developing Asia for 2022 and 2023 amid mounting risks from increased central bank monetary tightening, the fallout from the war in Ukraine and Covid-19 lockdowns in China.

The ADB now expects the area's combined economy, which includes China and India, to grow 4.3% this year, after previously trimming the forecast to 4.6% in July from 5.2% in April. For 2023, the ADB expects the region's economy to expand 4.9%, slower than the April and July forecasts of 5.3% and 5.2%, respectively, it said in the September edition of its flagship Asian Development Outlook report.

Wall Street ended Tuesday lower as the eve of a US Federal Reserve meeting expected to bring another large interest rate hike brought further evidence of the impact on corporate America from the inflation that the US central bank wants to tame.

The Federal Open Market Committee (FOMC), the US Federal Reserve's policy-setting committee, began its two-day meeting yesterday. The outcome of the FOMC meeting is critical as it includes projections, which could set the path of monetary policy for the next few months. Traders are anticipating another sharp rate hike, third consecutive, from the US central bank to tame the rising inflation.

Domestic markets:

Back home, equity barometers rallied on Tuesday, tracking positive Asian cues. The barometer index, the S&P BSE Sensex, rose 578.51 points or 0.98% to 59,719.74. The Nifty 50 index added 194 points or 1.10% to 17,816.25.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,196.19 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 131.94 crore in the Indian equity market on 20 September, provisional data showed.

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