Indian Shares Set For Lackluster Open On Muted Global Cues

Indian shares are seen opening on a flat note on Wednesday after new data showed the U.S. jobs market remains sluggish but not quickly deteriorating.

Energy stocks could be in focus after the price of crude oil plummeted to its lowest levels since early 2021 overnight.

Benchmark indexes Sensex and Nifty fell around 0.6 percent each on Tuesday, extending the previous session’s decline as a weakening rupee amid lingering uncertainty around tariffs coupled with persistent foreign portfolio outflows spurred risk aversion.

The Indian rupee extended its losing streak for the fourth trading day, hitting 91-per-dollar for the first time during intra-day trade before recovering partially to settle 15 paise lower at 90.93 against the U.S. dollar.

FIIs were net sellers of shares worth Rs 2,382 crore on Tuesday, while domestic institutional investors net bought shares to the extent of Rs 1,077 crore, as per provisional data available on the exchanges.

Asian markets were broadly lower this morning, extending losses for a third straight session. The dollar was little changed near a three-month low, helping gold prices surge above $4,300 per ounce.

Oil prices were up over 1 percent on a likely technical recovery after falling to almost five-year lows overnight on supply glut concerns and increased optimism surrounding a potential Russia-Ukraine peace deal.

Overnight, U.S. stocks fluctuated before ending narrowly mixed after the release of jobs and retail sales data.

Data showed the U.S. economy shed 105,000 jobs in October, while the unemployment rate touched 4.6 percent — its highest level since September 2021.

However, 64,000 jobs were added in November, beating analysts’ forecasts for an increase of 50,000 jobs.

Rising unemployment kept pressure on the Fed to consider cutting interest rates in the near futures, but at the same time raised concerns about the state of the world’s largest economy.

U.S. business activity expanded at its weakest pace since June, while retail sales were unexpectedly flat in October as consumers cut back on spending due to rising economic uncertainty, separate set of data revealed.

The tech-heavy Nasdaq Composite edged up by 0.2 percent, while the S&P 500 slid 0.2 percent and the Dow dropped 0.6 percent.

European stocks closed Tuesday’s session on a sluggish note as new data showed the Eurozone economic recovery lost some momentum at the end of 2025.

The pan-European Stoxx 600 fell half a percent. The German DAX dipped 0.6 percent, France’s CAC 40 slipped 0.2 percent and the U.K.’s FTSE 100 shed 0.7 percent.

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