Sensex, Nifty Poised For Flat Start Ahead Of Fed Decision

(RTTNews) - Indian shares are seen opening little changed on Wednesday after the International Monetary Fund (IMF) slashed India's economic growth forecast for financial year 2022-23 to 7.4 percent, sharply lower than its previous estimate of 8.2 percent, reflecting less favorable external conditions and more rapid policy tightening.

Defense-related stocks could be in focus after the government cleared weapon purchases worth Rs. 28,732 crore that will be designed and developed in the country.

Telecom shares may also see increased activity after reports that the 5G spectrum auction has received bids worth $18 billion on the first day.

Benchmark indexes Sensex and the Nifty fell around 0.9 percent each on Tuesday while the rupee settled flat at 79.78 against the dollar.

Asian markets traded mostly lower this morning, though the downside remained capped after Alphabet Inc., Microsoft Corp. and Texas Instruments Inc. all posted double-digit quarterly revenue growth and U.S. President played down recession fears.

Treasury yields were steady and the dollar index weakened as investors await Fed's policy decision.

Oil prices were flat to slightly higher in Asian trade after industry data showed a larger-than-expected drawdown in U.S. crude stockpiles.

U.S. stocks fell sharply overnight after downbeat earnings news from Walmart and General Motors.

A measure of consumer confidence dropped to nearly a 1-1/2-year low in July and new home sales tumbled to their lowest level in just over two years in June, raising the odds of a recession.

The tech-heavy Nasdaq Composite lost 1.9 percent, the S&P 500 shed 1.2 percent and the Dow dipped 0.7 percent.

European stocks ended mostly lower on Tuesday after the IMF slashed its global growth forecasts and raised its projections for inflation.

EU energy ministers agreed a plan to cut gas use across the bloc as Moscow further cuts its energy supplies to the European Union.

The pan European Stoxx 600 finished marginally lower. The German DAX fell 0.9 percent, France's CAC 40 index gave up 0.4 percent and the U.K.'s FTSE 100 ended flat with a negative bias.