Sensex, Nifty Set For Muted Start

(RTTNews) - Indian shares are seen opening flat to slightly lower on Wednesday as investors react to weak cues from global markets and await cues from the upcoming September-quarter earnings season.

The World Bank has raised its growth outlook for India to 6.5 percent from 6.3 percent for the current financial year, citing strong consumption growth, improved agricultural output and rural wage growth but trimmed its forecast for the next fiscal year, partly due to higher U.S. tariffs on exports.

Benchmark indexes Sensex and Nifty edged up by 0.2 percent and 0.1 percent, respectively on Tuesday to extend gains for a fourth consecutive session. The rupee settled 4 paise lower at 88.78 against the U.S. dollar.

Foreign institutional investors turned net buyers for the first time after September 9, buying shares worth Rs 1,441 crore on a net basis Tuesday, while domestic institutional investors marked their lowest buying since Aug 22, at Rs 452 crore, according to provisional exchange data.

Asian markets were mostly lower this morning after Wall Street's main indexes retreated from record highs overnight on U.S. government shutdown concerns and growing chatter about a bubble forming around artificial intelligence.

The U.S. dollar surged to a six-week peak in Asian trade and gold hit a new record high above $4,000 an ounce, while oil prices were up nearly 1 percent after industry data indicated a drop in stockpiles at a U.S. delivery hub.

Overnight, U.S. stocks closed lower after the Federal Reserve Bank of New York's latest consumer survey showed deteriorating future expectations and rising inflation projections.

Fed officials sent mixed signals on the pace of rate cuts, with Kashkari and Miran backing two rate cuts this year, while Schmid and Goolsbee argued against more rate cuts given sticky inflation and tariff-driven price pressures.

The tech-heavy Nasdaq Composite fell 0.7 percent, the S&P 500 dipped 0.4 percent and the Dow eased 0.2 percent.

European stocks ended flat to slightly lower on Tuesday as France faced renewed political instability.

The pan European Stoxx 600 slid 0.2 percent as regional bond yields spiked and a survey showed German manufacturing orders unexpectedly sank for the fourth straight month in August.

The German DAX, France's CAC 40 and the U.K.'s FTSE 100 all finished marginally higher.