Indian equity benchmarks fell in early trade on Wednesday, after the Sensex index closed at a record high in the previous session as the fog of war on the edge of Europe cluttered investors optimism on signs US inflation had peaked.
The BSE Sensex index fell 110.79 points to 61,762.20 in early trade, after closing at a record high of 61,872.99, and the broader NSE Nifty index opened in the red reflecting other major Asian bourses.
Asian equities fell, and the dollar rose on Wednesday, driven by the possibility of escalating geopolitical tensions further, following blasts in Poland that Ukrainian and Polish authorities claimed were caused by Russian-made missiles,
Japanese stock index Nikkei, Australian shares and China’s CSI 300 fell, while the Hang Seng Index in Hong Kong was flat.
US stock futures were down and pointed to a lower open after Wall Street stocks ended in the green overnight after data confirmed inflation has likely peaked there, albeit with capped gains.
Markets will monitor reports of a Russian-built rocket hitting NATO member Poland to determine whether it may cause the situation in Ukraine to flare up.
“(It) interrupted what is a far more constructive tone in markets over the last three, four days,” Dwyfor Evans, Head of Asia Pacific Macro Strategy at State Street Global Markets in Hong Kong told Reuters, noting there has been optimism in financial markets that US inflation was cooling.
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