Sensex, Nifty Seen Lower On Weak Global Cues

Indian shares are seen opening lower on Wednesday, mirroring weak global cues.

The downside, however, could be limited after S&P Global Ratings retained India’s economic growth projection at 9.5 percent for the current fiscal year, saying there were indications of a strong rebound in economic activity.

In an interview to Moneycontrol, Chief Economic Advisor Krishnamurthy Subramanian said that the Air India privatization was in an advanced stage and that the privatization of Bharat Petroleum and the initial public offering (IPO) of Life Insurance Corporation of India will be completed in the January-March quarter of the current fiscal year (2021-22).

Benchmark indexes Sensex and the Nifty fell around 0.7 percent and 0.6 percent, respectively on Tuesday while the rupee tumbled 23 paise to close at 74.06 against the greenback.

Asian markets fell broadly this morning as concerns over the debt-ceiling impasse in Washington, China’s power crunch and the Evergrande situation added to investor worries over slowing global growth.

The dollar traded near its strongest levels of the year while oil extended declines for a second day.

U.S. stocks tumbled overnight as a surge in Treasury yields hit mega-cap technology stocks and weak consumer confidence data stoked worries about the pace of economic growth.

The Dow lost 1.6 percent, while the S&P 500 slumped 2 percent and the tech-heavy Nasdaq Composite plunged 2.8 percent to log their sharpest pullback since May.

European stocks also closed sharply lower on Tuesday as higher bond yields, political uncertainty in Germany and weak industrial profits data from China triggered a flight from riskier assets.

The pan European Stoxx 600 gave up 2.2 percent. The German DAX dropped 2.1 percent, France’s CAC 40 index shed 2.2 percent and the U.K.’s FTSE 100 eased half a percent.