Sensex, Nifty Seen Lower On Weak Global Cues

Indian shares are seen opening lower on Wednesday, tracking weak cues from the U.S. and European markets overnight.

Meanwhile, GST collections slipped below Rs. 1 lakh crore for the first time in eight months in June as economic activity slowed due to the large lockdowns across the country, latest data released by the finance ministry showed.

Benchmark indexes Sensex and the Nifty moved closer to record highs on Tuesday before giving up all gains to end marginally lower after Tata Motors issued a profit warning for the first half of the current financial year. The rupee weakened by 24 paise to end at 74.55 (provisional) against the greenback.

Asian markets were mixed this morning and gold slipped from a three-week high as a bout of risk aversion boosted bonds and the dollar.

Investors await the release of minutes from the U.S. Federal Reserve’s June policy meeting for new insights into inflation and interest-rate outlook. Crude oil prices steadied in Asian trade after a steep drop in the previous session.

U.S. stocks ended broadly lower overnight on inflation fears and concerns about what happens with the Fed tapering. Growth in the services sector slowed in June and oil prices reversed earlier gains, adding to downbeat sentiment.

The tech-heavy Nasdaq Composite edged up 0.2 percent to reach a new record closing high, while the S&P 500 eased 0.2 percent to end a seven-day winning streak and the Dow dropped 0.6 percent.

European stocks fell from two-week highs on Tuesday as weak German data and concerns surrounding the delta variant of the coronavirus rekindled concerns of a slow recovery from the pandemic.

The pan European Stoxx 600 gave up half a percent. The German DAX tumbled 1 percent, while France’s CAC 40 index and the U.K.’s FTSE 100 both shed around 0.9 percent.