Sensex, Nifty Set To Extend Losses On Weak Global Cues

Indian shares are seen opening lower on Thursday after a late-day selloff on Wall Street overnight and amid a surge in Covid-19 cases in the country due to the sub-variant JN.1, which was first detected in Kerala.

Meanwhile, the International Monetary Fund (IMF) has warned that India’s general government debt may exceed 100 percent of gross domestic product (GDP) in the medium term.

The Indian government, however, disagreed, saying that sovereign debt risks are limited as it is mainly denominated in domestic currency.

Benchmark indexes Sensex and Nifty fell 1.3 percent and 1.4 percent, respectively on Wednesday while the rupee settled flat at 83.18 against the dollar.

Asian markets traded mostly lower this morning, with technology and commodity-related stocks bearing the brunt of the selling amid a shift in sentiment.

The dollar found a footing and gold ticked higher while oil prices traded mixed on demand concerns.

U.S. stocks ended sharply lower overnight as traders took profits after recent strong gains amid signs of falling inflation and dovish Fed bets.

General Mills and FedEx both cut revenue guidance for their fiscal years, overshadowing data showing improving consumer confidence and pick up in housing activity.

The Dow shed 1.3 percent while the tech-heavy Nasdaq Composite and the S&P 500 both fell around 1.5 percent.

European stocks closed mostly higher on Wednesday as investors cheered soft British inflation and improved German consumer confidence data.

The pan European STOXX 600 gained 0.2 percent. The German DAX finished marginally lower while France’s CAC 40 edged up 0.1 percent and the U.K.’s FTSE 100 jumped 1 percent.

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