Sensex, Nifty Set For Steady Start As US Election Results Trickle In

(RTTNews) - Indian shares are likely to open on a positive note Wednesday as traders return to their desks following a holiday on Tuesday for Guru Nanak Jayanti.

While firm global cues and falling oil prices may help offer some support at open, trading later in the day may be impacted by the U.S. midterm election results.

Republicans are expected to take control of the House and possibly the Senate. Equity markets are riding high on the possibility of a divided government that could prevent major policy changes.

Traders also look ahead to Thursday's report on U.S. consumer price inflation, which might suggest the path for interest rates ahead.

Economists expect a modest slowdown in the annual rate of consumer price growth, which could add to optimism about a slowdown in the pace of rate hikes.

Asian markets traded mixed this morning as COVID-19 cases in China continued to surge despite lockdowns.

The dollar wavered and gold steadied near one-month high while oil prices were little changed in Asian trade after falling 3 percent in the U.S. trading session on fuel demand worries.

U.S. stocks rose for a third straight session overnight as traders awaited the outcome of the U.S. midterm elections, which could affect influence government spending, new taxes and regulations.

The Dow rallied 1 percent to reach over two-month highs, while the tech-heavy Nasdaq Composite rose half a percent and the S&P 500 gained 0.6 percent.

European stocks ended a lackluster session on a positive note Tuesday. The pan European Stoxx 600 advanced 0.8 percent. The German DAX climbed 1.2 percent, France's CAC 40 index rose 0.4 percent and the U.K.'s FTSE 100 finished marginally higher.

Closer home, benchmark indexes Sensex and Nifty ended a choppy session modestly higher on Monday.

The rupee surged 48 paise to close at 81.92 per dollar after several Fed officials spoke in favour of a slower pace of U.S. rate increases going ahead.