(RTTNews) – Indian shares are seen opening flat to slightly lower on Wednesday after a technology-led sell-off on Wall Street overnight amid concerns around growth expectations in the AI segment.
Traders also await cues from big tech earnings and a string of rate decisions by major central banks.
Closer home, India’s industrial production advanced 4.1 percent year-over-year in March, following a downwardly revised 5.1 percent expansion in February, according to data from the Ministry of Statistics and Program Implementation. Economists had expected the growth to ease to 3.9 percent.
Benchmark indexes Sensex and Nifty fell around half a percent each on Tuesday as a weakening rupee and elevated oil prices fueled concerns about inflation and the outlook for interest rates and foreign fund inflows.
The Indian rupee settled 36 paise lower at 94.55 against the dollar, closing at a one-month low due to FPI-related outflows.
Foreign investors net sold shares worth Rs 2,104 crore on Tuesday, while domestic institutional investors net bought shares to the extent of Rs 1,712 crore, according to provisional exchange data.
Asian markets were mixed this morning, with Chinese and Hong Kong stocks rising while Japanese markets were shut for a public holiday.
The dollar held steady and U.S. Treasury yields hit multi-week highs ahead of the Federal Reserve’s interest-rate decision later in the day.
Brent crude futures held above $111 a barrel after rising around 3 percent in the prior session on mounting uncertainty around global supply.
The Trump administration stepped up pressure on Iran, warning global firms and governments of harsh sanctions over dealings with Iranian airlines, and threatening to sanction banks if they support Chinese private refiners buying Iranian oil.
In another significant development, the United Arab Emirates (UAE) has announced its abrupt exit from the Organization of Petroleum Exporting Countries, undermining the cartel’s ability to influence the oil market.
U.S. stocks ended mostly lower overnight after reports emerged that OpenAI recently missed its own targets for new users and revenue.
Rising oil prices and inflation worries amid an ongoing stalemate in the Middle East conflict also contributed to the sell-off.
President Trump showed little enthusiasm for a new proposal from Iran to end the war and claimed that the country is in a “state of collapse” and was figuring out its leadership situation.
Iran said the U.S. is no longer in a position to dictate policy to other nations. CNN reported, citing unnamed sources, that Iran is likely to come up with a “revised proposal” in the coming days.
The tech-heavy Nasdaq Composite gave up 0.9 percent, the S&P 500 declined half a percent and the narrower Dow finished marginally lower.
European stocks fell broadly on Tuesday amid earnings deluge and stalled U.S.-Iran negotiations.
The pan-European STOXX 600 dropped 0.4 percent. While the U.K.’s FTSE 100 inched up 0.1 percent, the German DAX dipped 0.3 percent and France’s CAC 40 shed half a percent.
