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Sensex, Nifty Set To Open On Steady Note

Indian shares are likely to open higher on Thursday after Wall Street's main indexes ended little changed overnight. As recession worries mount, the recent decline in oil price may help ease inflation worries on the domestic front.

Benchmark indexes Sensex and the Nifty fell around 1.4 percent each on Wednesday while the rupee declined by 19 paise to settle at a record low of 78.32 against the greenback.

Asian markets struggled to find direction this morning and the dollar slipped against major peers for a fourth day, while oil prices fell along with other commodities on global growth concerns.

U.S. stocks ended modestly lower overnight and the dollar fell alongside Treasury yields as Fed Chair Powell said the central bank will look for "compelling evidence" that inflation is cooling before it begins to scale back its monetary policy tightening plans.

Powell later acknowledged that achieving a "soft landing" will be "very challenging" due in part to factors outside of the Fed's control and noted a recession is "certainly a possibility."

The Dow and the Nasdaq Composite slipped around 0.2 percent each, while the S&P 500 finished 0.1 percent lower.

European stocks closed notably lower on Wednesday as surging U.K. inflation revived fears about aggressive monetary tightening and slowing growth.

The pan European Stoxx 600 declined 0.7 percent. The German DAX tumbled 1.1 percent, France's CAC 40 index shed 0.8 percent and the U.K.'s FTSE 100 gave up 0.9 percent.

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