Sensex, Nifty Seen Lower As Tariff Worries Bite

(RTTNews) - Indian shares are seen opening on a sluggish note Wednesday as investors react to mostly negative cues from global markets and rising U.S. bond yields.

Stock-specific action is likely, with investors likely to react to first-quarter earnings from HDFC Life, HDB Financial, ICICI Lombard, Just Dial and Network 18 Media.

Tech Mahindra, ITC Hotels and L&T Technology Services are due to unveil their Q1 results later today.

Benchmark indexes Sensex and Nifty ended up around half a percent each on Tuesday as signs of easing domestic inflation opened the room for more RBI rate cuts in the coming months. The rupee closed 16 paise higher at 85.82 against the dollar.

Asian markets were mostly lower this morning as U.S. President Donald Trump announced a trade deal pact with Indonesia and flagged steep tariffs on pharmaceuticals and semiconductors by July-end.

Trump also announced that India is negotiating a trade deal similar to the U.S.-Indonesia agreement, aiming for increased U.S. market access.

The dollar strengthened on rising U.S. Treasury yields, and gold was little changed below $3,330 per ounce while oil ticked higher on expectations of consistent demand from the U.S. and China.

U.S. stocks ended mixed overnight after the release of in-line inflation data and mixed earnings from major banks.

Data showed U.S. CPI increased 0.3 percent sequentially in June, putting the annual inflation rate at 2.7 percent and matching consensus estimates. The so-called core CPI grew 0.2 percent month over month and 2.9 percent year-on-year.

On the earnings front, JPMorgan Chase beat profit estimates but a key profitability metric fell short of expectations.

While Citigroup beat Wall Street estimates for second-quarter profit, Wells Fargo cut its full-year guidance for net interest income. Investing giant BlackRock said a large client pulled money during the second quarter.

The tech-heavy Nasdaq Composite edged up by 0.2 percent to reach a new record high as Nvidia said it would "soon" resume H20 AI chip sales to China. The S&P 500 eased 0.4 percent and the Dow lost 1 percent.

European stocks closed lower for a third consecutive session on Tuesday as rising U.S. inflation spurred bond yields. The pan European STOXX 600 dipped 0.4 percent.

The German DAX gave up 0.4 percent, France's CAC 40 declined half a percent and the U.K.'s FTSE 100 shed 0.7 percent.