Sensex, Nifty Likely To Open On Cautious Note

(RTTNews) - Indian shares may open on a cautious note Thursday after Wall Street stocks extended their losing streak to the longest since January amid heightened tensions in the Middle East and renewed uncertainty around rate cuts.

The downside, if any, may remain limited as focus shifts to earnings and Israel's diplomatic offensive against Iran.

Meanwhile, the International Monetary Fund (IMF) has raised its forecast for India's GDP growth in FY24 by a steep 110 basis points (bps) to 7.8 percent, citing continuing strength in domestic demand and a rising working-age population.

Indian markets were closed on Wednesday for Ram Navami.

Benchmark indexes Sensex and Nifty ended down around 0.6 percent each on Tuesday to extend losses for a third straight session while the rupee plunged to a record closing low of 83.54 against the dollar.

Asian markets were mixed in range-bound trade this morning while the dollar held steady after falling for the first time in six days Wednesday.

Gold ticked higher, while oil held the largest decline in two months as investors react to bearish inventory data and the reimposition of U.S. sanctions on Venezuelan crude.

U.S. stocks ended lower overnight as Middle East tensions remained high and hawkish Fed commentary dashed investor hopes for multiple rate cuts this year.

The Dow slipped 0.1 percent, while the S&P 500 and the the-heavy Nasdaq Composite shed 0.6 percent and 1.2 percent, respectively to extend losses for a fourth day running.

European stocks eked out modest gains on Wednesday after falling sharply in the previous session.

The pan European STOXX 600 ended flat with a positive bias. The German DAX finished marginally higher, France's CAC 40 rose 0.6 percent and the U.K.'s FTSE 100 added 0.4 percent.