Indian shares are seen opening lower on Thursday, tracking extremely weak global cues. That said, there may be limited downside as global ratings agency Fitch Ratings endorsed India's efforts to tame fiscal deficit.
In a surprise move, Fitch upgraded India's sovereign credit outlook to "stable" from "negative", reflecting the measures taken by the government to contain the budget deficit, including the commitments made in the 2013-14 budget, as well as some progress in addressing the structural impediments to investment and economic growth.
Meanwhile, in a strong measure that may prop up the rupee, the government has hiked the foreign investment limit in government debt by $5 billion.
Indian shares joined a global selloff in equities and commodities to end modestly lower on Wednesday. The benchmark Sensex dropped 1.2 points or 0.53 percent to 19,041, while the broader Nifty index ended the session down 29 points or 0.49 percent at 5.760.
In corporate news, Apollo Tyres has agreed to acquire US-based Cooper Tire & Rubber Company in an all-cash transaction for around Rs 14,500 crore.
Sun Pharma said it had settled its ongoing litigation in the US District Court regarding its US subsidiary's generic drug pantoprazole.
Maruti Suzuki India has launched an exchange program with special discounts and offers.
Asian Markets
Asian stocks are tumbling, led by Japan, on uncertainty over the Fed's next move and as the World Bank cut its global growth forecast for this year to 2.2 percent from 2.4 percent forecast previously, citing the downturn in the Eurozone and a slowdown in major emerging economies.
Japan's Nikkei index is plunging over 5 percent, fueled by worries about a surging yen, which rose to its highest level against the dollar since April 4. Australia's S&P/ASX 200 is down more than a percent at a fresh five-month low.
China's Shanghai Composite index is tumbling 3 percent as trading resumed for the first time this week. Hong Kong's Hang Seng index is plunging 2.8 percent and South Korea's Kospi is losing a percent.
U.S. And European Markets
The major U.S. averages fell between 0.8 percent and 1.1 percent overnight, with the Dow dropping below the psychologically-important 15,000 level, driven by lingering concerns about the outlook for the Federal Reserve's stimulus program. Reports of violent crackdowns on protesters in Turkey and a lackluster Treasury bond auction also weighed on the markets.
European stocks surrendered their early gains on Wednesday, as persistent worries about a pullback in economic stimulus from the Federal Reserve and a storm of public protests and fierce opposition from within the coalition government in Greece over its abrupt decision to shut down state broadcaster ERT offset optimism over encouraging data on Eurozone industrial production and British jobless claims. Benchmark indexes in France, the U.K. and Germany fell between 0.4 percent and 1 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.