Sensex, Nifty Set To Open Lower After US Tech Selloff

Indian shares look set to open on a tepid note Thursday after major U.S. indexes fell sharply overnight, led by steep declines for technology stocks.

Renewed concerns over an unexpected increase in short and long-term capital gains taxes may also keep underlying sentiment cautious.

Benchmark indexes Sensex and Nifty ended modestly lower on Wednesday, with financials and FMCG stocks leading losses.

The rupee ended marginally weaker at a record closing low of 83.71 against the dollar.

Foreign institutional investors (FIIs) sold stocks worth Rs a net 5,130.90 crore in the cash market on July 24 while domestic institutional investors (DIIs) were net buyers of shares to the tune of Rs 3,137.30 crore, according to provisional data.

Asian markets followed Wall Street lower this morning while the yen strengthened as investors braced for a Bank of Japan policy meeting next week.

The dollar index was subdued, and gold fell below $2,400 per ounce as investors await key U.S. GDP and inflation readings for cues on the Federal Reserve’ rate trajectory.

Oil traded lower in Asian trade on concerns over weak demand in China, the world’s largest crude importer.

U.S. stocks fell the most in more than 18 months overnight as disappointing earnings from Tesla and Alphabet fueled concerns the frenzy around artificial intelligence technology might be overblown.

In economic news, data showed new home sales fell to a seven-month low in June.

The tech-heavy Nasdaq Composite plummeted 3.6 percent to reach its lowest closing level in over a month, while the S&P 500 slumped 2.3 percent and the Dow tumbled 1.3 percent.

European stocks closed lower on Wednesday as investors reacted to a deluge of earnings and data showing business activity in the eurozone slowed further in July.

The pan European STOXX 600 dropped 0.6 percent. The German DAX shed 0.9 percent, France’s CAC 40 lost 1.1 percent and the U.K.’s FTSE 100 eased 0.2 percent.