Indian markets are poised for a lower open on Wednesday, reflecting a significant decline in global equities as concerns over a potential U.S. economic slowdown loom large. Investors are closely monitoring the upcoming U.S. jobs data, set to be released on Friday, for cues on potential Federal Reserve rate cuts.
Despite the potential downturn, overall losses may be mitigated to some extent due to a steep 5 percent drop in oil prices during the U.S. trading session, driven by growth concerns.
On Tuesday, benchmark indices displayed mixed outcomes: the 30-share Sensex ended its ten-day winning streak, while the Nifty index notched gains for the 14th consecutive session. Meanwhile, the Indian rupee depreciated by 5 paise, closing at 83.96 against the dollar.
Asian markets are currently experiencing significant declines, with gold prices remaining steady below $2,500 per ounce and crude oil prices continuing their downward trend after a nearly 5 percent drop in the previous session.
U.S. stocks saw a sharp downturn overnight, marking their worst declines since August 5. Weak manufacturing data intensified fears of an impending recession, leading the tech-heavy Nasdaq Composite to plunge by 3.3 percent, heavily impacted by substantial losses in Nvidia and other semiconductor stocks. The S&P 500 fell by 2.1 percent, and the Dow Jones Industrial Average dipped by 1.5 percent, as two key indicators pointed to persistent sluggishness in manufacturing activity.
European stocks also retreated from record highs on Tuesday, influenced by renewed growth concerns from the latest U.S. data. The pan-European STOXX 600 declined by 1 percent, the German DAX fell by 1 percent, France's CAC 40 dropped by 0.9 percent, and the U.K.'s FTSE 100 decreased by 0.8 percent.
