Indian Stock Market Set for Weak Opening as Global Cues Turn Negative

The Indian equity market is expected to open lower on Wednesday, tracking weakness in global markets. Gift Nifty was trading around the 25,190 mark, at a discount of nearly 65 points to the Nifty futures’ previous close, signaling a soft start for domestic indices.

On Tuesday, benchmark indices extended losses for a third consecutive session, weighed down by concerns over the US H-1B visa fee hike and uncertainty around India-US trade talks. The Sensex slipped 57.87 points (0.07%) to close at 82,102.10, while the Nifty 50 fell 32.85 points (0.13%) to settle at 25,169.50.

Global sentiment remained weak as Wall Street indices ended lower overnight, breaking a three-day record-setting streak, after cautious comments from US Federal Reserve Chair Jerome Powell.

In Asia, Japan’s Nikkei 225 declined 0.08%, the Topix slipped 0.35%, South Korea’s Kospi shed 0.35%, and the Kosdaq fell 0.39%. However, Hong Kong’s Hang Seng Index futures pointed to a positive start.

“Despite near-term volatility, we expect Indian markets to remain supported by a rebound in domestic demand, aided by GST reforms and festive momentum,” said Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services.