Sensex, Nifty Seen Flat As Investors React To Mixed Macro Data

(RTTNews) - Indian shares may open on a sluggish note Wednesday as investors react to mixed economic readings on the domestic front.

India's GDP growth slowed to a three-quarter low of 4.4 percent in the October-December quarter of financial year 2022-23, reflecting a 1.1 percent contraction in manufacturing and weakness in consumer demand and exports, official data showed.

Separate data revealed that growth in eight core infrastructure industries registered a four-month high in January this year at 7.8 percent with seven of the eight sectors witnessing positive growth.

Benchmark indexes Sensex and Nifty fell around half a percent each on Tuesday to extend losses for an eighth consecutive session, while the rupee gained 21 paise to close at 82.58 against the dollar amid suspected RBI intervention.

Asian markets traded mixed this morning after data showed China's manufacturing activity bounced further into expansion territory in February.

The dollar held firm on safe-haven demand while gold and oil prices were seeing marginal gains.

U.S. stocks ended on a subdued note overnight to log monthly declines amid expectations the Fed will maintain interest rates higher for longer.

In economic releases, consumer confidence declined again in February while Chicago-area business activity unexpectedly contracted at a slightly faster rate in the month, separate reports showed.

The Dow slid 0.7 percent to reach its lowest closing level in well over three months, while the S&P 500 eased 0.3 percent and the tech-heavy Nasdaq Composite edged down 0.1 percent.

European stocks closed mostly lower on Tuesday, as hotter-than-expected inflation figures from France and Spain pointed to more rate increases from the European Central Bank.

The pan-European STOXX 600 declined 0.3 percent. The German DAX inched down 0.1 percent, France's CAC 40 index slipped 0.4 percent and the U.K.'s FTSE 100 shed 0.7 percent.