Indian shares are expected to open on a flat note Thursday, influenced by weak signals from global markets. Investors are currently assessing potential U.S. policy risks amid ongoing U.S.-China tensions.
Despite the potential for downward movement, losses may be limited due to the Asian Development Bank's (ADB) decision to maintain India's GDP growth forecast for FY25 at 7 percent. The ADB also noted that India's stronger-than-expected fiscal position could further enhance economic growth.
Stock-specific activity is anticipated as earnings reports are released and investors prepare for the upcoming Budget announcement. The approaching weekly Nifty expiry may also contribute to volatility as the trading session progresses.
Indian markets were closed on Wednesday for Muharram. On Tuesday, benchmark indices Sensex and Nifty ended slightly higher after relinquishing early gains. The rupee closed marginally up at 83.58 against the dollar.
Asian stocks have followed Wall Street lower this morning, with Japanese markets experiencing significant losses as the yen reached a six-week high due to suspected Bank of Japan (BOJ) intervention. Traders are also awaiting policy announcements from a key leadership meeting in Beijing.
The U.S. dollar remains near its weakest level in four months against a basket of currencies, while gold remains near record highs on expectations of interest-rate cuts by the Federal Reserve in September.
Oil prices extended overnight gains following data indicating a larger-than-expected decline in U.S. crude inventories.
U.S. stocks had a mixed finish overnight as shares of chipmakers and large-cap companies fell due to valuation concerns.
Economic data revealed that housing starts and building permits rebounded in June. Although U.S. industrial production cooled during the month, it still surpassed analysts' expectations.
The tech-heavy Nasdaq Composite dropped by 2.8 percent amid discussions of stricter regulations on China's chip industry and comments by former President Trump that Taiwan should compensate the U.S. for defense. The S&P 500 fell by 1.4 percent, while the Dow Jones Industrial Average rose by 0.6 percent.
European stocks broadly declined on Wednesday following a profit warning from Dutch semiconductor firm ASML and concerns about slowing demand in China.
The pan-European STOXX 600 declined by 0.5 percent. Germany's DAX decreased by 0.4 percent, France's CAC 40 slipped by 0.1 percent, while the U.K.'s FTSE 100 edged up by 0.3 percent.
