Sensex, Nifty Seen Opening Lower After Strong Rally

(RTTNews) - Indian shares look set to open a tad lower on Wednesday following the previous session's strong rally.

Risk-off sentiment prevails in financial markets, with the dollar and Treasury yields firming up amid expectations that the U.S. Federal Reserve will deliver another 75-bsis point interest-rate hike in July, followed by a half-percentage-point rise in September.

Benchmark indexes Sensex and the Nifty jumped around 1.8 percent and 1.9 percent respectively on Tuesday to extend gains for a second straight session, while the rupee settled at a new record low of 78.08 against the dollar.

Asian markets traded mostly lower in cautious trade this morning as investors awaited Fed Chair Jerome Powell's key testimony before the congress.

Oil prices fell more than 3 percent in Asian trade amid a push by U.S. President Joe Biden to bring down soaring fuel costs.

To curtail rising gas prices, Biden is expected to call for temporarily suspending the 18.4-cents a gallon federal tax on gasoline.

U.S. stocks rebounded on Tuesday as traders returned to their desks after a long holiday weekend.

The S&P 500 added 2.5 percent following the worst week since March 2020 and the Dow climbed 2.2 percent to post its best single-day gain since May 4 while the tech-heavy Nasdaq Composite surged 2.5 percent.

European stocks also rose on Tuesday despite growing worries about ebbing global growth.

The pan-European Stoxx 600 inched up 0.4 percent after hitting a more than one-year low last week. The German DAX edged up 0.2 percent, France's CAC 40 index gained 0.8 percent and the U.K.'s FTSE 100 rose 0.4 percent.