Sensex, Nifty Set For Muted Start

(RTTNews) - Indian shares are seen opening little changed on Wednesday as investors react to mixed global cues and wait for the RBI policy outcome.

The U.S. federal government is lurching toward a shutdown after Democrats and Republicans failed to agree on a stopgap funding bill.

The Reserve Bank of India announces its monetary policy decision later in the day, with economists expecting no change in the repo rate and the policy stance.

Benchmark indexes Sensex and Nifty ended marginally lower on Tuesday to extend losses for an eighth consecutive session amid ongoing FII selling due to global trade uncertainties. The rupee fell by 4 paise to a record low of 88.79 against the dollar. Foreign institutional investors (FIIs) were net sellers of shares to the tune of Rs 2,328 crore on Tuesday, while domestic institutional investors bought shares worth Rs 5,762 crore on a net basis, according to provisional exchange data.

Asian stocks were muted this morning, with Chinese and Hong Kong markets closed for a holiday.

The dollar index edged up after three days of losses while gold hovered near record levels set Tuesday.

Oil prices edged up slightly in Asian trade, as a draw in U.S. crude inventories helped stabilize markets after two days of sharp losses fueled by oversupply concerns.

U.S. stocks rose for a third straight session overnight as investors took the prospect of a government shutdown in their stride.

In economic releases, U.S. consumer confidence plummeted in September to its lowest since April, while job openings were little changed in August and hiring was subdued, separate set of data revealed. The Dow edged up 0.2 percent to hit a record closing high.

The tech-heavy Nasdaq Composite and the S&P 500 rose 0.3 percent and 0.4 percent, respectively to notch their best third quarter since 2020 and their best September performance since 2010, shrugging off the risk of stagflation and elevated stock valuations.

European stocks rose on Tuesday to conclude September on a positive note. The pan European Stoxx 600 gained half a percent.

The German DAX rose 0.6 percent, France's CAC 40 inched up by 0.2 percent and the U.K.'s FTSE 100 added half a percent.