The Indian equity benchmarks are set to open on a flat note as indicated by Nifty Futures traded on Singapore Exchange. Nifty Futures on Singapore Exchange also known as the SGX Nifty Futures was unchanged at 18,132 amid weak global cues. Japan's Nikkei tumbled 2.23 per cent, Taiwan Weighted declined 0.37 per cent and South Korea's KOSPI declined 0.48 per cent.
Overnight, benchmark US Treasury yields jumped to two-year highs and equity markets tumbled on Tuesday, with the Nasdaq falling more than 2 per cent, as traders braced for the Federal Reserve to tackle fast-rising inflation by tightening monetary policy, news agency Reuters reported.
On Wall Street, the Dow Jones Industrial Average slid 1.51 per cent, the S&P 500 fell 1.84 per cent and the Nasdaq Composite slipped 2.60 per cent to close almost 10 per cent below its record closing high on Nov. 19, which would confirm a correction.
MSCI's all-country world index closed down 1.57 per cent as tech stocks dropped in Asia overnight despite China easing policy again.
Investors are increasingly pricing in as many as four Fed rate hikes this year, with the first seen coming in March, and one from the European Central Bank.
Back home, foreign institutional investors sold shares worth Rs 1,255 crore on Tuesday and domestic institutional investors sold shares worth Rs 220 crore.
L&T Technology Services will be in focus after its net profit rose 34 per cent to Rs 249 crore in December quarter. Its revenue from operations came in at Rs 1,687.50 crore compared with Rs 1,400.70 crore in the same quarter last year.
Bajaj Finance will be on investors’ radar after the company reported 84 per cent jump in net profit to Rs 1,934 crore in December quarter compared with Rs 1,049 crore during the same period last year.
