Sensex, Nifty Seen Opening Flat On Weak Global Cues

(RTTNews) - Indian shares are seen opening on a flat note Thursday, tracking weak cues from global markets as investors weigh potential U.S. policy risks in the face of heightened U.S.-China tensions.

The downside, if any, may remain limited after the Asian Development Bank (ADB) kept India's GDP growth forecast for FY25 unchanged at 7 percent, adding the country's stronger-than-expected fiscal position could provide a further boost to economic growth.

Stock-specific action is likely as earnings roll in and investors look ahead to the upcoming Budget. The impending weekly Nifty expiry may trigger some volatility as the session progresses.

Indian markets were closed on Wednesday for Muharram. On Tuesday, benchmark indexes Sensex and Nifty ended marginally higher, giving up early gains. The rupee settled marginally higher at 83.58 against the dollar.

Asian stocks followed Wall Street lower this morning, with Japanese markets leading regional losses as the yen scaled a six-week high due to suspected BOJ intervention. Traders also awaited policy news from a key leadership gathering in Beijing.

The U.S. dollar held near its weakest in four months against a basket of currencies while gold hovered near record highs on bets for interest-rate cuts by the Federal Reserve in September.

Oil extended overnight gains after data showed a bigger-than-expected drop in U.S. crude stocks.

U.S. stocks ended mixed overnight as shares of chipmakers and large-cap companies retreated on valuation concerns.

In economic releases, data showed housing starts and building permits recovered in June. A measure of U.S. industrial production cooled in the month but still exceeded analyst expectations.

The tech-heavy Nasdaq Composite plummeted 2.8 percent amid talk of tougher rules to rein in China's chip industry and Trump's comments that Taiwan should pay the U.S. for defense. The S&P 500 tumbled 1.4 percent while the Dow rose 0.6 percent.

European stocks fell broadly on Wednesday after a profit warning from Dutch semiconductor firm ASML and amid worries about slowing Chinese demand.

The pan European STOXX 600 dropped half a percent. The German DAX shed 0.4 percent and France's CAC 40 slipped 0.1 percent while the U.K.'s FTSE 100 edged up 0.3 percent.