FX.co ★ Sensex, Nifty May Struggle For Direction At Open

Indian stocks may face difficulty gaining traction on Wednesday as the market anticipates U.S. consumer and producer price inflation data, Federal Open Market Committee (FOMC) meeting updates, and the European Central Bank's policy announcement. Investors are also keenly awaiting the fourth-quarter earnings data from Indian IT companies and U.S. banks to ascertain potential market trends.

Additionally, the market may witness volatility ahead of the Id-Ul-Fitr holiday on Thursday, April 11. On Tuesday, the benchmark indexes, Sensex and Nifty, surrendered early gains to close marginally lower, while the rupee remained steady at 83.31 against the dollar.

In Asia, markets were cautiously moving as U.S. Treasuries stabilized after their rise on Tuesday. The Fed Bank of Atlanta's President Raphael Bostic restated his prediction for a single rate cut this year, however, he remained open to modifying this forecast subject to economic changes.

Investors kept a close eye on Gold that maintained levels below its record peak, as news regarding cease-fire talks in Gaza continued to stream in. Oil prices remained mostly unchanged after two days of decreased value, due to reports indicating an increase in U.S. crude stockpiles.

In the U.S., market sentiment was mixed as investors sought new hints regarding the trajectory of interest rates. Concerns about inflation were sparked by a surge in metals prices and bond yields, along with the anticipation of key inflation data and bank earnings reports. The tech-heavy Nasdaq Composite saw a marginal rise of 0.3 percent and the S&P 500 edged up 0.1 percent, whereas the Dow closed slightly lower.

On Tuesday, European stocks took a hit due to rising geopolitical tensions and hawkish comments from Federal Reserve officials. The broad-based STOXX 600 declined by 0.6 percent. Germany's DAX lost 1.3 percent, France's CAC 40 shed 0.9 percent, and the U.K.'s FTSE 100 fell by 0.1 percent.