Opening Bell: Market may begin on higher note; SBI in focus

The Bombay Stock Exchange (BSE) building is reflected on a glass window as people look at a large screen displaying India's benchmark share index on the facade of the building in Mumbai November 10, 2008. REUTERS/Arko Datta (INDIA) - RTXAG6O

The market could look to continue its bullish momentum from Tuesday, still riding on the political certainty from the state assembly elections results. This, even as global markets wait for cues from the US Federal Reserve’s monetary policy meeting, which is expected to announce a rise in interest rates. Trends on SGX Nifty indicate a steady start on the market.

The Asian markets opened lower following losses in US stocks as traders awaited a decision on interest rates from the US Federal Reserve.

The Nikkei was lower over three tenth of a percent as the yen strengthened against the dollar, while the Hang Seng was down 0.39 percent. The Bank of Japan’s monetary policy meeting is underway and the central bank is widely expected to keep monetary policy steady. Kospi was trading flat with a mild negative bias.

Meanwhile, the Taiwanese market was trading higher, up about half a percent, while the Singapore Straits is in the red, down a tenth of a percent

In the US, Wall Street closed slightly lower ahead of a likely interest rate hike. Energy stocks lead the fall after US crude briefly fell 2 percent to hit a fresh three-month low.

Simultaneously, in Europe, markets ended Tuesday's session with modest losses. Traders remain in a cautious mood ahead of the Dutch election and an announcement from the US central bank.

After a long weekend, the market staged spectacular rally Tuesday, with the Nifty closing above 9000 level for the first time on hopes of BJP strengthening reform agenda following emphatic victory in Uttar Pradesh and Uttarakhand. Better-than-expected January industrial output (growing 2.7 percent) also aided sentiment.

The 30-share BSE Sensex surged 615.7 points intraday but failed to hit its record high of 30,024.74 touched on March 4, 2015. It closed up 496.40 points or 1.71 percent at 29,442.63, the highest level in last two years.

The 50-share NSE Nifty hit an intraday all-time high of 9,122.75 and stayed above psychological 9,000-mark throughout the session. It was up 152.45 points or 1.71 percent to end at 9,087, backed by banks, FMCG and infra stocks.

On the macro front, February’s retail inflation was reported at 3.65 percent, while food inflation climbed to 2 percent from half a percent in January.

State Bank of India (SBI) could be in focus as its Board is set to meet on Wednesday. On the agenda is a decision on raising funds through equity capital.

The dollar was on tenterhooks in early trade as investors awaited cues from the Fed’s meeting on its monetary policy. anxiously to see what clues the u.s. Federal reserve would soon reveal on its monetary policy outlook.

Sterling nursed its losses after tumbling to an eight-week low in the previous session, amid worries about a prolonged and painful process of the UK’s exit from the European Union.

Oil prices rose more than 2 percent in early Asian trade, recovering from a three-month low, after industry data showed a surprise drawdown in US crude stockpiles. The rise came after the contract marked a seventh straight decline in a row, the longest losing streak since January 2016.

In precious metals, gold prices steadied, weighed down by expectations for a rise in interest rates in the US that boosted the dollar but supported at the margins by political risks in Europe.