Sensex, Nifty Set For Steady Open; GDP Data In Focus

Indian shares look set to open on a firm note Wednesday after official data showed the Indian economy logged a record growth in the three months to June due to a low base last year.

GDP grew 20.1 percent year-on-year in the April to June quarter versus a 24.4 percent contraction in the same period of the fiscal year 2020-21, preliminary estimates from the statistics ministry showed. Economists had forecast 20 percent growth.

While agriculture and manufacturing continue to contribute to the recovery, construction showed the highest rise among the sectors.

Benchmark indexes Sensex and the Nifty jumped over 1 percent each on Tuesday to reach fresh record closing highs, while the rupee rose by 29 paise to close at 73.00 against the dollar, extending gains for the fourth day and marking a nearly 12-week high.

Asian markets traded mixed this morning as China’s Caixin manufacturing gauge showed contraction in August and China Evergrande Group warned that it risks defaulting on borrowings.

Beijing’s widening regulatory crackdown also remained on investors’ radar after President Xi Jinping chaired a high-level meeting that backed further regulatory tightening in certain sectors.

The U.S. dollar pinned near three-week lows and gold held steady as investors awaited a key U.S. jobs report for clues on when the Federal Reserve might start reducing its pandemic-era stimulus.

Oil prices traded flat ahead of an OPEC+ meeting, at which major producers will decide whether to go ahead with their plan to add supply.

U.S. stocks ended slightly lower overnight but logged strong gains for August on continued optimism over economic recovery despite uncertainty surrounding the Delta variant of the coronavirus.

The Dow and the S&P 500 slipped around 0.1 percent each as a survey showed consumer sentiment tumbling to near decade lows in August on the back of rising gas and food prices. The tech-heavy Nasdaq Composite ended largely unchanged.

European markets ended lower on Tuesday as inflation in the euro zone hit a 10-year high and ECB Governing Council member Rob Holzmann said the central bank should start thinking about reducing pandemic aid.

The pan European Stoxx 600 declined 0.4 percent. The German DAX dropped 0.3 percent, France’s CAC 40 index slipped 0.1 percent and the U.K.’s FTSE 100 eased 0.4 percent.