Sensex, Nifty Seen Little Changed At Open

(RTTNews) - Indian shares may open on a cautious note Thursday, tracking weak cues from global markets. The downside, if any, may remain capped amid tumbling oil prices and expectations that the rate tightening cycle in India may be nearing its peak.

Oil prices extended losses to hit their highest level this year on Wednesday, giving up all of the gains since Russia's invasion of Ukraine, on concerns about fuel demand.

Meanwhile, amid easing of inflation expectations, analysts say that the RBI may go easy on raising rates further.

Benchmark indexes Sensex and the Nifty ended modestly lower on Wednesday while the rupee closed slightly higher to snap a three-day losing streak, as the Reserve Bank of India (RBI) raised its benchmark interest rates for the fifth consecutive meeting and vowed there will be no letup in its fight to tame high inflation.

Asian markets traded mixed this morning amid growing fears of an economic slowdown.

The dollar traded weak, helping oil prices recover some ground after recent heavy losses. Gold held steady after climbing about 1 percent overnight, helped by a pullback in the greenback and bond yields.

U.S. stocks closed mostly lower overnight as investors pondered the outlook for interest rates and the economy.

The S&P 500 slipped 0.2 percent to extend losses for the fifth straight session and the tech-heavy Nasdaq Composite dropped half a percent while the Dow ended flat with a positive bias.

European stocks fell for a fourth day running on Wednesday, with fears about a possible U.S. recession as well as dismal trade data from China weighing on sentiment.

The pan European STOXX 600 gave up 0.6 percent. The German DAX declined 0.6 percent, while France's CAC 40 index and the U.K.'s FTSE 100 both dipped around 0.4 percent.