Indian shares are expected to open lower on Thursday, following a hotter-than-expected US consumer price inflation reading that raised expectations of another Federal Reserve rate hike this year. The benchmark Nifty 50 closed at 22,622.7 on Wednesday, with GIFT Nifty futures indicating a negative start at 22,606.5 early Thursday morning, according to livemint.com.
The quicker rise in US inflation to 3.7% year-on-year in September, above market expectations of 3.6%, has increased concerns over tighter global monetary conditions. This has pressured risk assets, including emerging market equities such as India, which has seen foreign investors sell Indian stocks for 14 consecutive sessions, resulting in record year-to-date outflows of $32.7 billion. Asian markets also faced sharp declines, with Korea’s Kospi plunging over 7% and Japan’s Nikkei falling 4%, as reported by thehindubusinessline.com.
The elevated US Treasury yields and a stronger dollar are contributing to outflows from emerging markets, further weighing on investor sentiment. Technology and growth stocks, particularly in the artificial intelligence and semiconductor sectors, have come under pressure amid fears of increased competition from Chinese companies. Additionally, crude oil prices remain elevated around $94–95 per barrel, while renewed geopolitical tensions in the Middle East add to market uncertainty, according to thehindubusinessline.com.
Domestic investors will focus on company earnings, with Wipro scheduled to release its second-quarter results later in the day. The market will closely watch Wipro’s outlook on discretionary technology spending, deal conversions, and margins following HCL Tech’s recent better-than-expected earnings, livemint.com reported.