Markets seem on track to snap their three-day losing streak with the BSE Sensex trading 0.29% higher at 20,743.23 points as Turkey's decision to hike interest rates stirred hopes that the move would stem the sell-off being seen in emerging markets. On Tuesday, Reserve Bank of India (RBI) decided to raise its repo rate by 25 basis points.
Among sectoral indices, except for BSE Metal Index, all indices were trading in the green. BSE Metal Index was 1% down, while BSE Capital Goods Index was the biggest gainer with 1.44%. Among individual stocks, Maruti Suzuki (9.01%), BHEL (4.35%) and Hero MotoCorp (2.92%) were the biggest gainers on the Sensex.
Meanwhile, most Asian indices were in the green. KOSPI (1.26%), Jakarta Composite (1.88%), Shanghai Composite (0.56%) and Hang Seng (0.82%) traded higher. Meanwhile, Straits Times was down 0.53%.
FIIs have net bought about $75 million worth of Indian shares in January but experts suggest the pace of buying is slowing down. Industry watchers believe that fears of a more aggressive cut in quantitative easing loom, which might impact FII flows to emerging markets such as India.
On Wednesday, the Dow Jones Industrial Average had ended up 0.57%, while Nasdaq Composite was up 0.35%.