FX.co ★ Sensex, Nifty Seen Tad Lower At Open

Investors in India anticipate a cautious start to trading this Thursday, influenced by varied international indicators and concerns over the broader market's high valuations. The ongoing worries over inflation could also impact investment decisions as oil prices surged nearly 3% to a four-month high on Wednesday. This surge was fueled by attacks on Russian refineries by Ukraine and unanticipated reductions in U.S. oil stocks.

The primary indices, Sensex and Nifty, experienced a dip of about 1.2% and 1.5% respectively on Wednesday. This was primarily due to uncertainty surrounding the U.S Federal Reserve's rate cut and a warning issued by SEBI (Securities and Exchange Board of India) over the inflated valuations in the small, medium, and micro-cap sectors.

The Indian rupee depreciated slightly, losing 5 paise to close at 82.85 against the U.S dollar.

Mixed activity was observed in the Asian markets this morning, while gold remained stable. The dollar sustained against major currencies in light of key U.S data releases expected later today, including retail sales, producer price inflation, and weekly jobless claims statistics.

U.S equities primarily closed lower overnight, as investors claimed profits from chipmaker stocks and eagerly awaited guidance from the upcoming Federal Open Market Committee (FOMC) meeting. Responding to ongoing inflation worries, oil prices have surged to a four-month high.

The Nasdaq Composite, heavily comprised of tech stocks, slipped by half a percent, the S&P 500 declined by 0.2%, while Dow Jones managed to record slight gains, marking its third consecutive session of growth. Meanwhile, European stocks experienced a successful trading day on Wednesday, buoyed by data suggesting the UK economy may exit its recession soon.

The pan-European STOXX 600 index reported a 0.2% gain. France's CAC 40 advanced by 0.6%, and the UK's FTSE 100 grew by 0.3%. However, Germany's DAX ended flat, reflecting a negative bias.