Sensex, Nifty Set To Drift Lower On Weak Global Cues

(RTTNews) - Indian shares are likely to open on a downbeat note Wednesday, tracking downbeat cues from global markets.

The downside, however, may remain limited after crude prices reversed early gains to end sharply lower Tuesday on expectations that the developments in the Middle East will not lead to major supply disruptions.

Adani Group stocks could be in focus today ahead of the Supreme Court verdict in the Adani-Hindenburg case.

Banking stocks may also see increased activity after the RBI proposed draft norms on dividend declaration by banks.

Meanwhile, India has recorded 573 fresh cases of Covid-19 in the last 24 hours, according to Union Health Ministry data.

Benchmark indexes Sensex and Nifty ended modestly lower on Tuesday while the rupee fell by 11 paise to close at 83.32 against the dollar.

Asian markets traded mostly lower this morning and the dollar edged higher on risk-off sentiment as doubts resurfaced over early interest rate cuts by the Federal Reserve.

Gold held steady while oil extended steep overnight declines despite concerns over the Red Sea.

U.S. stocks ended lower overnight to extend the pullback seen in the final trading session of 2023 as Barclays downgraded Apple stock to underweight and yields ticked higher from multi-month lows on waning rate cut optimism.

The tech-heavy Nasdaq Composite tumbled 1.6 percent and the S&P 500 gave up 0.6 percent while the Dow finished marginally higher after a choppy session.

European stocks ended mostly lower on Tuesday, giving up early gains after the release of downbeat Eurozone and U.K. manufacturing PMI data.

The pan-European STOXX 600 ended 0.1 percent lower after hitting its highest level since Jan. 2022 intraday.

The German DAX inched up 0.1 percent while France's CAC 40 and the U.K.'s FTSE 100 both slipped around 0.2 percent.