The US Dow Jones Industrial Average ended 0.25 per cent higher on Wednesday as retailers results and solid economic data boosted confidence in the American economy.
Yesterday, the gauge had soared more than 400 points intra-day after the BJP emerged as the single largest party in Karnataka. However, it gave up all gains to end modestly lower after the Congress unexpectedly stitched up a post-poll alliance with the JD(S) and staked claim to form the government.
The benchmark 10-year bond yield rose by 10 bps and ended at 7.83%, its highest since February 2016 and compared with 7.73% on Friday.
If rupee’s weakness was a concern, the recent move by the United States to exit the Iran nuclear deal and a looming threat of US sanctions on Iran is likely to keep oil and gasoline prices higher.
The broader Nifty-50 index was trading marginally down by 2.35 points, or 0.02 per cent at 10,720.15.
European shares opened broadly flat as investors prepared for President Donald Trump’s decision on whether to withdraw the United States from the Iran nuclear deal.
The 30-share Sensex, which had gained 292.76 points in the previous session, rose another 180.73 points, or 0.51 per cent, to 35,388.87.
The Indian currency has been the worst performer this year so far, losing 5.10 per cent since January.
According to brokers, a weak trend in other Asian bourses as investors watched the outcome of trade talks between the US and China, ahead of the April employment data, to be released later in the day, influenced market sentiments.
Shares of Reliance Industries and Maruti Suzuki were higher by 2.66 per cent and 1.28 per cent ahead of earnings, to be announced later in the day.
For the rupee, Wednesday’s was the lowest closing since February 22, 2017. The Sensex also fell over 115 points, while the Nifty closed below 10,600.
The 30-share index was trading 15.24 points, or 0.04 per cent, lower at 34,400.34, with metals and banking stocks leading the losses. The NSE Nifty opened 28.75 points, or 0.27 per cent, higher at 10,592.80.
The NSE Nifty was up 42.70 points, or 0.40 per cent, at 10,568.90 in early trade.
The successive growth in fourth straight months in the index of industrial production (IIP) at 7.1 per cent and moderation in consumer price index (CPI) inflation to 4.28 per cent, lifted the sentiment.
The 30-share index opened on a positive note, only to turn negative and trade 130 points, or 0.38 per cent, lower at 33,750.74.