Sensex, Nifty Seen Tad Higher At Open

Indian shares look set to open a tad higher on Wednesday despite mixed global cues.

Telecom stocks could be in focus amid reports that the government is preparing a relief package to ensure that the financially-stressed telecom sector doesn’t become a duopoly.

Meanwhile, Fitch Ratings said India continues to “lag way behind” in COVID vaccination, and the negative outlook on sovereign rating signifies the rising debt-to-GDP ratio.

Benchmark indexes Sensex and the Nifty retreated from record highs to end on a flat note Tuesday after a highly volatile session.

The rupee plunged 32 paise to close at 73.42 (provisional) against the greenback, tracking a firmer dollar in overseas markets and an uptick in U.S. Treasury yields.

Asian markets fell broadly this morning due to worries about slowing growth and the dollar traded firm, while crude oil steadied after a two-day declines as producers in the U.S. Gulf of Mexico struggled to restart operations nine days after Hurricane Ida swept through.

Market participants look ahead to Thursday’s meeting of the European Central Bank, which may act to slow down its massive bond-buying program in light of recent stronger-than-expected inflation data.

U.S. stocks ended mixed overnight as worries that the economic recovery is faltering were offset by expectations that the Federal Reserve may delay tapering asset purchases.

The Dow shed 0.8 percent and the S&P 500 eased 0.3 percent as traders returned from a long weekend. The tech-heavy Nasdaq Composite edged up marginally to close at a fresh record high.

European stocks ended lower on Tuesday as investors pondered the impact of COVID-19 and rising inflation on growth.

The pan European Stoxx 600 declined half a percent. The German DAX gave up 0.6 percent, France’s CAC 40 index eased 0.3 percent and the U.K.’s FTSE 100 dropped half a percent.

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