Sensex, Nifty Poised For Steady Start Despite Global Growth Worries

(RTTNews) - Indian shares look set to open higher on Wednesday despite mixed global cues and fears of earnings downgrades. Auto stocks may see significant activity as the Auto Expo 2023 begins later today.

The World Bank slashed its global growth forecasts in the bank's latest Global Economic Prospects report and warned that new adverse shocks could tip the global economy into a recession.

India's GDP growth has been retained at 6.9 percent for financial year 2022-23 but it was noted in the report that the pace of growth may slow amid spillovers from a project slowdown.

Benchmark indexes Sensex and Nifty fell over 1 percent each on Tuesday, with hawkish comments from two Fed officials and disappointing earnings from TCS weighing on sentiment.

The rupee breached the psychological 82-mark against the dollar to record its best single-day gain since November last year.

Asian markets traded mostly higher this morning on optimism surrounding the reopening of China's economy. The dollar held firm ahead of U.S. consumer inflation data due on Thursday, pushing gold and prices lower in Asian trade.

U.S. stocks settled on a firm note overnight after Fed Chair Jerome Powell refrained from commenting on rate policy at a symposium.

The Dow rose 0.6 percent and the S&P 500 added 0.7 percent while the tech-heavy Nasdaq Composite climbed 1 percent to extend its winning streak for a third day.

European stocks closed lower on Tuesday on U.S. rate hike woes. The pan European STOXX 600 dropped 0.6 percent. The German DAX slipped 0.1 percent, France's CAC 40 index shed 0.6 percent and the U.K.'s FTSE 100 eased 0.4 percent.