Expect Nifty to gain at opening bell; Yellen urges caution over rate rises

Indian equities indices were consolidating in a narrow range with a negative bias on Tuesday amid caution ahead of derivatives expiry and investors waiting for a speech by the US Federal Reserve Chair Janet Yellen. On sectoral front, pharma continues to be under selling pressure. IT, FMCG shares also witnessed some correction. On the other hand, Auto, Metal and Banking stocks pushed the index higher. The Sensex dropped 65.94 points to 24900.46;  and the Nifty declined 18.10 points to 7597. Broader markets witnessed some profit booking; the BSE Midcap index fell 0.1% and the BSE Smallcap index is down 0.23%.

U.S. stocks reversed early losses on Tuesday, as investors welcomed the latest signal from the Federal Reserve that it will move slowly to raise interest rates. The Dow Jones industrial average rose 97.72 points or 0.6% to 17,633.11. The S&P 500 index gained 17.96 points, or 0.9% to 2,055.01 and the Nasdaq composite index climbed 79.84 points, or 1.7% to 4,846.62.

Crude oil prices fell for a fifth session, WTI crude dropped USD 1.11, or 2.8% to USD 38.28 a barrel in New York. Brent crude, used to price international oils, lost USD 1.13, or 2.8% to USD 39.14 a barrel in London.

European markets closed mostly higher on Tuesday as investors appeared ready to receive a further signal that U.S. interest rates will be raised at a slow pace this year. The Stoxx Europe 600 rose 0.5% to end at 336.79. Germany’s DAX 30 was up 0.4% to 9,887.94 and France’s CAC 40 was tacking on 0.9% to 4,366.67. The FTSE 100 closed roughly flat, dipping less than 0.1% to 6,105.90.

Most Asian markets were higher on Wednesday, except Japan, after Federal Reserve Chair Janet Yellen reasserted the Central Bank’s gradual approach to raising interest rates. Japan's Nikkei 225 retraced some of its early losses to trade off by 0.35%. Australia’s S&P/ASX 200 Index climbed 0.33% and the Kospi index increased by 0.5%. The Shanghai Composite index jumped 1.75%. Hong Kong’s Hang Seng index gained 1.4%.

On domestic front, A SGX Nifty 50 index future for March series traded up 60 points at 7,647. Indian markets are likely to open in green on account of positive global cues.