Indian shares are set to open lower on Wednesday, mirroring weak global cues, reflecting concerns about the economic impact when global central banks start tightening monetary policy. Investors will closely track the movement of rupee, which dipped below the 59 per dollar mark before recouping some of its loss to close at 58.39/40 against the dollar yesterday, drawing support from dollar selling by PSU banks and exporters at the behest of the RBI.
The price of oil, gold and other commodities fell sharply yesterday, giving some hope of reprieve for the rupee. Meanwhile, the government is set to unveil industrial output data for April and consumer price inflation figures for May today.
Indian shares fell sharply on Tuesday on worries that a weaker rupee would undermine the government's fiscal and economic measures that helped spark a surge in FII inflows in recent months. The benchmark BSE Sensex fell by 298 points or 1.53 percent to 19,143, while the broader Nifty index ended at 5,789, down 89 points or 1.52 percent from its previous close.
In corporate news, the National Stock Exchange said it has identified 17 scrips for shifting to the restricted trading category from June 14 as a measure to ensure market safety.
The Andhra Pradesh High Court gave its approval for the merger of Mahindra Satyam with Tech Mahindra, paving the way for the creation of the fifth largest IT company in India.
Jindal Steel and Power said it was committed to fully cooperating with the CBI after the latter registered a first information report against the company in the coal scam case.
Asian Markets
Asian stocks are declining across the board, with Japanese shares leading the declines following a selloff on Wall Street and in Europe overnight. Adding to growth worries, data out of Japan showed that the nation's core machinery orders plunged a seasonally adjusted 8.8 percent in April to 723.3 billion yen from the previous month, falling for the second time in seven months.
Japan's Nikkei index is losing 1.8 percent, while stocks elsewhere are posting modest losses. Markets in China and Hong Kong are closed for public holidays.
U.S. And European Markets
U.S. stocks fell sharply overnight, as the lack of further action from the Bank of Japan to curb volatility in bond markets fueled concerns that global central banks may be less forthcoming with additional monetary stimulus. The Dow fell 0.8 percent, the tech-heavy Nasdaq lost 1.1 percent and the S&P 500 dropped a percent.
European stocks fell to six-week lows on Tuesday on worries that the era of ultra-loose global monetary policy is on the wane. Investor sentiment was also impacted by the political turmoil in Turkey where anti-government protests strengthened. Benchmark indexes in the U.K., Germany, France and Switzerland fell between 0.9 percent and 1.5 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.