Hong Kong: Ahead of inflation data due out in India today, Nifty futures were up in early trades, but since then, they’ve slipped into the red, in line with sentiment across the Asia-Pacific region
As at 7.30 am IST, Nifty futures are down a tick after being up by about two-tenths of 1 percent in early trades. Economists expect wholesale price inflation for April to moderate, which if validated will give cause for relief, after last week’s horrendous IIP data.
It could also strengthen the case for another cut in interest rates by the RBI, of which economists expect a fair bit during this year. But so long as the rupee remains weak, inflation fears will inhibit sweeping cuts in rates.
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Sentiment is likewise turning negative across other markets in the region too: key indices are retreating into the red after the positive start that they had made in response to news of a cut in the CRR in China on Saturday, also in response to weak economic data. As at 7.30 am IST, Hong Kong and Shanghai indices are down, and Sydney and Tokyo are struggling to hold on to early morning gains.
Reuters
Wall Street futures are down again, on eurozone worries, which is also a dampener on sentiment in Asia. Greece is still struggling to form a government, and economic commentariat chatter is once again getting hysterical about a disorderly unravelling of the euro arrangement. US Treasuries are rallying for the eight straight week on heightened risk aversion.
Back home, analysts expect markets to remain volatile in the absence of positive triggers. The choppiness in early trades on the Nifty futures market and indices elsewhere in Asia could persist.
