Key Indian equity indices follow global markets to open lower
The Indian markets followed the global markets as there was caution before the meetings of central banks in the US and Japan this week
Key Indian equity indices opened lower on Tuesday in line with peers in other markets across the globe, notably due to caution before the meetings of the central banks of the US and Japan this week.
The sensitive index (Sensex) of the BSE, which had closed at 25,678.93 points on Monday, opened at 25,604.92 points. Soon after, it was ruling at 25,593.18 points, down 85.75 points, or 0.33 percent.
At the National Stock Exchange, the 50-share Nifty, which had closed the previous day at 7,855.05 points, opened on Tuesday at 7,828.15 points. Minutes after, the index was ruling at 7,828.15, down 26.90 points, or 0.34%.
Just ahead of the opening bell in India, the SGX Nifty -- or the Nifty index futures that trades on the Singapore Stock Exchange -- was ruling at 7,845.00 points, down 30 points, or 0.38 percent.
On Monday, investor mood was dampened by negative global cues. Coupled with unwinding of long positions, this led to the Nifty losing 44.25 points or 0.56 percent, and the Sensex dropping 159.21 points, or 0.62 percent.
Tuesday saw key indices in the Asia Pacific retract, ahead of the meetings of the Bank of Japan and US Federal Reserve. While the US Fed is expected to make an announcement on Wednesday, the Japanese central bank is expected follow on a day later.
"On Monday, US benchmarks ended marginally in the negative, but well off the lows of the day as cautiousness prevailed ahead of the Fed meeting," Angel Broking said in an analysis, ahead of the opening bell for Indian bourses.
"The Fed is expected to keep interest rates unchanged but investors will keep a close eye on the Fed Chair`s comments regarding future outlook. European markets declined following the release of weaker than expected German business confidence data."