Indian shares are likely to open lower on Wednesday after the International Monetary Fund (IMF) slashed its economic growth forecast for India to 9.5 percent for the fiscal year to March 31, 2022 from 12.5 percent projected in April, saying the onset of a severe second COVID-19 wave cut into recovery.
Weak global cues may also weigh on markets as investors await the outcome of a Federal Reserve policy meeting.
Benchmark indexes Sensex and the Nifty reversed early gains to end down about half a percent each on Tuesday while the rupee fell by five paise to close at 74.46 against the greenback.
Asian markets were mostly lower this morning as Chinese equities fell further and U.S. megacap technology earnings received a mixed response.
The dollar was pinned below recent highs and the yield on 10-year Treasury notes was down at 1.238 percent, while oil prices rose after industry data showed U.S. crude and product inventories fell more sharply than expected last week.
Overnight, U.S. stocks fell from record highs to snap a five-session winning streak and real U.S. bond yields hit all-time lows as investors fretted over a sell-off in Chinese shares and awaited cues from the Fed meeting.
The Dow dipped 0.2 percent and the S&P 500 shed half a percent while the tech-heavy Nasdaq Composite index lost 1.2 percent ahead of earnings reports from some of the most valuable technology companies.
European stocks ended Tuesday’s session firmly in the red amid Beijing’s widening crackdown on tech and education companies.
The pan European Stoxx 600 slipped half a percent. The German DAX dropped 0.6 percent, France’s CAC 40 index gave up 0.7 percent and the U.K.’s FTSE 100 eased 0.4 percent.
Market Analysis
Sensex, Nifty Seen Subdued On Weak Global Cues
2021-07-28 03:00:16
