Indian equities are poised for a positive start on Thursday, buoyed by strong cues from other Asian markets and a significant overnight decline in crude oil prices as concerns over Libyan supply dissipated, though anxieties over Chinese demand remain.
However, overall gains may be restrained due to geopolitical tensions as Israel contemplates a potential ground offensive in Lebanon.
Technology stocks may attract attention following an earnings report from U.S. memory chipmaker Micron that exceeded expectations.
On Wednesday, benchmark indices Sensex and Nifty both rose approximately 0.3%, while the rupee appreciated by 3 paise to close at 83.60 against the dollar.
This morning, Asian markets traded higher in anticipation of the U.S. GDP report, a speech by Federal Reserve Chair Jerome Powell, and forthcoming price data scheduled for later this week.
The dollar maintained its strength after experiencing its sharpest rally since early June. Gold prices remained near record highs, and oil prices were relatively unchanged after a more than 2 percent drop on Wednesday.
Overnight, U.S. stock markets closed lower as investors weighed the health of the U.S. economy and the likelihood of another substantial interest rate cut by the Federal Reserve in November.
Housing data presented a mixed outlook with a notable decline in new home sales in August, contrasting with a surge in mortgage applications that reached their highest level since 2022.
The Dow Jones Industrial Average fell 0.7%, ending a four-day winning streak. The S&P 500 dipped 0.2%, while the tech-centric Nasdaq Composite managed to finish slightly higher.
European stocks ended a two-day winning streak on Wednesday, influenced by declining energy stocks amid falling oil prices. Additionally, Sweden’s central bank indicated further easing after reducing its key interest rate for the third time this year.
The pan-European STOXX 600 edged down 0.1%. Germany's DAX decreased by 0.4%, France's CAC 40 fell by 0.5%, and the U.K.'s FTSE 100 declined by 0.2%.
