Markets set to open lower as traders brace for US data

The domestic benchmark indexes are likely to open lower on Wednesday, tracking a drop in Asian shares, on resurgent worries over US slowdown and as traders turn cautious ahead of key data that could gauge the quantum of Federal Reserve's interest rate cut.

The GIFT Nifty GIFc1 was trading at 25,171 points, as of 7:50 a.m. IST, indicating that the NSE Nifty 50 index .NSEI will open below its previous close of 25,279.85 points.

The Nifty 50 index snapped a record 13-session winning streak on Tuesday, as trading remained choppy in the absence of local market-moving cues.

Historically, September has been a tumultuous month with heightened volatility both in Indian and global markets, said Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management.

Asian shares fell on Wednesday after Wall Street closed lower overnight as tepid US manufacturing data spurred worries about a potential slowdown in the world's largest economy.

AI heavyweight Nvidia NVDA.Otumbled about 9.5 per cent, in the deepest ever single-day decline in market value for a US company. MKTS/GLOB

A slew of US economic data is due this week, including readings on job openings, jobless claims and the closely watched nonfarm payrolls report on Friday.

These data will determine the course of an interest rate cut in the United States.

Domestically, traders eye oil majors Bharat Petroleum BPCL.NS and Oil and Natural Gas Corp. ONGC.NS after Reuters reported that the two firms are jointly exploring setting up a refinery.

Both foreign institutional investors and domestic institutional investors net bought shares on Tuesday, purchasing stocks worth Rs 1,029 crore and Rs 1,896 crore, respectively.

Stock to watch

General Insurance Corp of India: Government proposes to offload a stake of about 6.8 per cent in the company, sale will be made at a floor price of Rs 395 per share.

AU Small Finance Bank: Company sought approval for a universal bank license from the central bank.

Indian Energy Exchange: Company posts about 36 per cent Y/Y increase in total trade volume in August to 12,040 million units, electricity volumes rise by about 17 per cent.