Indian shares may see a slight decline on Wednesday, as investors digest mixed global signals and await key economic data, including industrial production and retail inflation figures. The World Bank has maintained its growth forecast for India at 6.6 percent for FY25, reaffirming the country’s status as the fastest-growing major economy.
Morgan Stanley remains optimistic about Indian equities, citing robust earnings growth fueled by structural reforms. The firm projects India’s per-capita income will more than double by fiscal 2034, potentially driving further domestic consumption.
On Tuesday, benchmark indices Sensex and Nifty concluded a volatile session with marginal changes, while the rupee reached an all-time low of 83.57 against the dollar.
Asian markets displayed mixed performance this morning, with caution prevailing ahead of the U.S. consumer price data release and the Federal Reserve’s interest rate decision later today. The Fed is widely expected to maintain current interest rates, but investors will closely scrutinize officials’ updated economic and rate projections.
Market sentiment suggests reduced likelihood of rate cuts this year, with many analysts predicting the Federal Reserve's first rate reduction will come in November.
The dollar remained stable in Asian trading after reaching a four-week high against other currencies overnight. U.S. Treasuries steadied following a strong $39 billion auction. Gold experienced a slight decline, while oil prices continued to rise amid data indicating reduced U.S. crude stockpiles.
Overnight, U.S. stocks had a mixed performance as Apple revealed its new artificial intelligence features, and Treasury yields declined ahead of upcoming inflation data and the Federal Reserve’s policy meeting. The Nasdaq Composite gained 0.9 percent, and the S&P 500 rose 0.3 percent to new record closing highs, whereas the Dow Jones Industrial Average fell by 0.3 percent.
European stocks fell on Tuesday due to political uncertainties within the EU and mixed signals from U.K. employment data. The pan-European STOXX 600 dropped 0.9 percent, with Germany’s DAX declining 0.7 percent, France’s CAC 40 down by 1.3 percent, and the U.K.'s FTSE 100 shedding 1 percent.
