Indian Shares Poised for Lower Opening as US Economic Data Looms
Curated by THEOUTPOST
On Wed, 4 Sept, 5:14 AM UTC
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[1]
Indian shares set to open lower as traders brace for US data
BENGALURU (Reuters) - India's benchmark indexes are likely to open lower on Wednesday, tracking a drop in Asian shares, on resurgent worries over U.S. slowdown and as traders turn cautious ahead of key data that could gauge the quantum of Federal Reserve's interest rate cut. The GIFT Nifty was trading at 25,171 points, as of 7:50 a.m. IST, indicating that the NSE Nifty 50 index will open below its previous close of 25,279.85 points. The Nifty 50 index snapped a record 13-session winning streak on Tuesday, as trading remained choppy in the absence of local market-moving cues. Historically, September has been a tumultuous month with heightened volatility both in Indian and global markets, said Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management. Asian shares fell on Wednesday after Wall Street closed lower overnight as tepid U.S. manufacturing data spurred worries about a potential slowdown in the world's largest economy. AI heavyweight Nvidia tumbled about 9.5%, in the deepest ever single-day decline in market value for a U.S. company. [MKTS/GLOB] A slew of U.S. economic data is due this week, including readings on job openings, jobless claims and the closely watched nonfarm payrolls report on Friday. These data will determine the course of an interest rate cut in the United States. Domestically, traders eye oil majors Bharat Petroleum and Oil and Natural Gas Corp. after Reuters reported that the two firms are jointly exploring setting up a refinery. Both foreign institutional investors and domestic institutional investors net bought shares on Tuesday, purchasing stocks worth 10.29 billion rupees and 18.96 billion rupees, respectively. STOCKS TO WATCH * General Insurance Corp of India: Government proposes to offload a stake of about 6.8% in the company, sale will be made at a floor price of 395 rupees per share. * AU Small Finance Bank: Company sought approval for a universal bank license from the central bank. * Indian Energy Exchange: Company posts about 36% Y/Y increase in total trade volume in August to 12,040 million units, electricity volumes rise by about 17%. (Reporting by Bharath Rajeswaran and Manvi Pant in Bengaluru; Editing by Sherry Jacob-Phillips)
[2]
Indian shares set to open lower as traders brace for US data
The Nifty 50 index snapped a record 13-session winning streak on Tuesday, as trading remained choppy in the absence of local market-moving cues. Historically, September has been a tumultuous month with heightened volatility both in Indian and global markets, said Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management. Asian shares fell on Wednesday after Wall Street closed lower overnight as tepid U.S. manufacturing data spurred worries about a potential slowdown in the world's largest economy. AI heavyweight Nvidia tumbled about 9.5%, in the deepest ever single-day decline in market value for a U.S. company. [MKTS/GLOB] A slew of U.S. economic data is due this week, including readings on job openings, jobless claims and the closely watched nonfarm payrolls report on Friday. These data will determine the course of an interest rate cut in the United States. Domestically, traders eye oil majors Bharat Petroleum and Oil and Natural Gas Corp. after Reuters reported that the two firms are jointly exploring setting up a refinery. Both foreign institutional investors and domestic institutional investors net bought shares on Tuesday, purchasing stocks worth 10.29 billion rupees and 18.96 billion rupees, respectively. * General Insurance Corp of India: Government proposes to offload a stake of about 6.8% in the company, sale will be made at a floor price of 395 rupees per share. * AU Small Finance Bank: Company sought approval for a universal bank license from the central bank. * Indian Energy Exchange: Company posts about 36% Y/Y increase in total trade volume in August to 12,040 million units, electricity volumes rise by about 17%. (Reporting by Bharath Rajeswaran and Manvi Pant in Bengaluru; Editing by Sherry Jacob-Phillips)
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Indian stock markets are expected to open lower as investors cautiously await key US economic data. The anticipation of this data is influencing global market sentiment and impacting Indian equities.
Market Outlook
Indian shares are set to open lower as traders and investors brace for upcoming US economic data. The cautious sentiment stems from the potential impact of this data on global markets, particularly emerging economies like India 1.
Key Factors Influencing the Market
The Indian stock market's performance is closely tied to global economic indicators, especially those from the United States. The impending release of US consumer price inflation data and retail sales figures is creating uncertainty among investors 2.
Recent Market Performance
On the previous trading day, Indian benchmarks closed lower, with the NSE Nifty 50 index falling 0.56% to 19,443.55 and the S&P BSE Sensex declining 0.48% to 64,948.66. This downward trend is expected to continue as market participants adopt a cautious stance 1.
Global Market Context
The anticipation of US economic data is not only affecting Indian markets but also influencing global sentiment. Asian shares have been trading lower, reflecting the widespread caution among investors across the region 2.
Domestic Factors
While external factors are playing a significant role, domestic elements are also contributing to the market outlook. Indian wholesale price inflation data, scheduled for release later in the day, could provide further direction to the markets 1.
Investor Strategy
Given the current market conditions, investors are likely to adopt a wait-and-watch approach. The upcoming economic data releases could potentially influence the US Federal Reserve's future policy decisions, which in turn could impact global capital flows 2.
Sectoral Impact
Various sectors of the Indian economy may be affected differently by these market movements. Export-oriented industries, in particular, could face increased scrutiny as global economic indicators shift 1.
As the markets prepare to open, all eyes will be on how these various factors play out and shape the trading day ahead for Indian equities.
Reference
[1]
Indian Shares Expected to Open Flat Amid Mixed Global Cues
Indian stock markets are likely to open with little change as investors weigh mixed global signals and await domestic economic data. The focus remains on upcoming inflation figures and corporate earnings reports.
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Indian Stock Market Faces Sharp Decline Amid Global Economic Concerns
The Indian stock market opened with significant losses, reflecting weak global cues. Both Sensex and Nifty indices experienced major cuts, with key sectors feeling the impact.
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Indian Stock Markets Soar to Record Highs, Boosted by IT Sector
The Sensex and Nifty, India's key stock indices, reached new all-time highs, driven by a surge in IT stocks following Accenture's strong quarterly results and raised full-year forecast.
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2 Sources
Indian Stock Markets Open Lower Amid Global Economic Concerns
Indian stock markets opened on a negative note, mirroring weak global cues. Key indices Sensex and Nifty faced early losses as concerns over China's economy and potential interest rate hikes in the US weighed on investor sentiment.
2 Sources
2 Sources
Wall Street Futures Rise on Rate Cut Hopes; Nvidia Earnings in Focus
U.S. stock futures edge higher as investors anticipate potential rate cuts and await Nvidia's earnings report. The market sentiment is cautiously optimistic, with the S&P 500 and Dow Jones Industrial Average poised for gains.
7 Sources
7 Sources
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