Sensex, Nifty Set To Drift Lower On Growth Worries

(RTTNews) - Indian shares look set to open lower on Wednesday as investors fret over rising oil prices and a possible recession. The FII sell-off is another reason that market participants are worried about.

Oil prices fell in Asian trade after rising more than 2 percent on Tuesday amid concerns over tight global supply.

Benchmark indexes Sensex and the Nifty ended a choppy session marginally higher on Tuesday, extending gains for a fourth straight session. However, the rupee sank 46 paise to close at 78.83 against the dollar.

Asian markets followed Wall Street lower on doubts over whether the Federal Reserve can avoid a bruising economic downturn.

New York Fed President John Williams and San Francisco's Mary Daly both said on Tuesday that they had to cool the hottest inflation in 40 years but insisted that a soft landing was still possible.

In Europe, the European Central Bank announced it intends to raise its key interest rates by 25 bps in July.

U.S. stocks erased earlier gains to end sharply lower overnight after a survey showed a measure of U.S. consumer confidence deteriorated to its lowest level in over a year in June on surging inflation.

Th Dow dipped 1.6 percent, the tech-heavy Nasdaq Composite tumbled 3 percent and the S&P 500 shed 2 percent.

European stocks extended a winning streak for a third day on Tuesday as China relaxed some COVID-19 quarantine requirements for international travelers, ECB President Christine Lagarde played down fears of a recession in the euro zone and the largest U.S. lenders passed the Fed's annual stress tests.

The pan European Stoxx 600 edged inched up 0.3 percent. The German DAX rose 0.4 percent, France's CAC 40 index gained 0.6 percent and the U.K.'s FTSE 100 climbed 0.9 percent.