Sensex, Nifty Seen Higher At Open; Inflation Data Eyed

(RTTNews) - Singapore Nifty futures indicate a positive start for Indian markets after recent losses. Underlying sentiment, however, may remain cautious amid growing risk aversion stemming from the U.S. rate hike fears and escalating geopolitical tensions.

The IMF said it anticipates 2023 will feel like a recession for millions around the world, echoing warnings from the United Nations, the World Bank and many global CEOs.

India's GDP growth forecast for 2022-23 has been lowered to 6.8 percent from 7.4 percent it had estimated earlier in July.

Retail inflation data is due later in the day, with the CPI expected to hit a five-month high of 7.30 percent in September due to surging food prices.

Benchmark indexes Sensex and Nifty both fell around 1.5 percent each on Tuesday to extend losses for a third straight session, while the rupee ended little changed at 82.35 against the greenback.

Asian markets were broadly lower this morning, with Chinese and Hong Kong stocks leading regional losses as Beijing imposed fresh lockdowns and travel restrictions amid COVID surge.

The dollar hit a 24-year high against the yen amid Instability in the U.K. bond market and U.S. inflation data due this week, while oil extended declines for a third consecutive session on demand concerns.

U.S. stocks fluctuated before ending mostly lower overnight, as the IMF warned of slowing growth and the Bank of England ruled out extending its emergency intervention in Britain's bond market into next week.

The Dow inched up 0.1 percent while the S&P 500 shed 0.7 percent and the tech-heavy Nasdaq Composite lost 1.1 percent.

European stocks declined for the fifth day running on Tuesday as investors assessed risks to corporate earnings and economic growth from rising interest rates, escalating geopolitical tensions and climbing COVID cases across China.

The pan European Stoxx 600 gave up 0.6 percent. The German DAX slipped 0.4 percent, France's CAC 40 index eased 0.1 percent and the U.K.'s FTSE fell 1.1 percent.