Sensex, Nifty Set To Open On Cautious Note

(RTTNews) - Indian shares may open on a cautious note Wednesday after Wall Street's main indexes closed lower on the first trading day of 2023.

Oil explorers, state-run oil marketing companies, airlines and paint manufacturers could be in focus after oil prices plunged more than 4 percent overnight to hit a two-week low on fuel demand concerns.

Benchmark indexes Sensex and Nifty rose about 0.2 percent each on Tuesday to extend gains for a second day running, with financials and IT stocks leading the surge.

The rupee, however, pared initial gains and settled 8 paise lower at 82.86 against the dollar, weighed by a strong greenback overseas and sustained foreign fund outflows.

Asian markets traded mostly higher this morning amid signs that COVID infections may have peaked in some big Chinese cities.

However, Japanese shares bucked the positive trend as trading resumed after a long holiday weekend.

The dollar eased ahead of the release of some key U.S. economic data due this week, including the Federal Reserve's meeting minutes for December and the closely watched monthly jobs report.

The yen held steady amid efforts by the Bank of Japan to depress yields on government debt.

Gold edged higher, drawing support from recession worries after former New York Federal Reserve President William Dudley said a recession is likely because of what the Fed has to do.

Oil prices were little changed after suffering heavy losses in the U.S. trading session.

U.S. stocks fell overnight, and the dollar jumped, as caution set ahead of key macroeconomic data due this week that could offer additional clues on when and where interest rates might peak.

The Dow finished marginally lower, while the tech-heavy Nasdaq Composite shed 0.8 percent and the S&P 500 eased 0.4 percent.

European stocks closed on a firm note Tuesday to extend gains from the previous session, as Chinese state-media downplayed the seriousness of the COVID-19 pandemic and data showed German consumer inflation slowed in December.

The pan European STOXX Europe 600 rallied 1.2 percent. The German DAX rose 0.8 percent, France's CAC 40 index gained 0.4 percent and the U.K.'s FTSE 100 climbed 1.4 percent.