The Indian market is set to open lower on Wednesday in tandem with other Asian markets, with worries about sovereign debt problems in the euro zone periphery and lower commodity prices amid the dollar's advance against its major counterparts likely to keep sentiment subdued.
Most Asian stocks fell this morning, reversing early gains, as many investors are still very much cautious about investing in riskier assets amid lingering worries over euro zone debt and world economic growth.
The dollar and yen advanced versus most major peers as heightened risk aversion spurred demand for safe-haven investments. The Dow futures are declining 71 points as traders await the durable goods orders report expected later in the day for a clear view of the outlook for U.S. growth.
Closer home, the country's fiscal gap may not narrow to the targeted 4.6 per cent of gross domestic product in the current financial year if global oil prices continue to rise, chief economic advisor Kaushik Basu said on Tuesday. He also cautioned that economic growth may fall short of nine per cent in the current financial year because of the anti-inflationary stance adopted by the central bank in recent quarters.
Reserve Bank of India Governor Duvvuri Subbarao said last week that India would find it difficult to deliver its fiscal deficit target this year, unless it made adjustments either on the expenditure side or the tax side.
On Wall Street, stocks moved in a choppy fashion before ending modestly lower overnight, as traders were reluctant to make any significant moves following the previous session's sell-off. Lingering worries about debt woes in the euro zone too weighed on sentiment to a notable extent. The Dow slipped 0.2 percent and the S&P 500 eased 0.1 percent while the Nasdaq lost half a percent.
Crude oil prices moved higher on Tuesday, with hopes of higher fuel demand and a weak dollar offering support. Light sweet crude for July delivery ended up $1.89 at $99.59 a barrel on the New York Mercantile Exchange.
Back home, the benchmark indexes Sensex and the Nifty erased early gains to end flat Tuesday, as a rebound in commodities amid a weaker U.S. dollar and a buy recommendation from Goldman Sachs Group Inc. rekindled inflation and interest rate worries.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.