Indian equities seen opening on a weak note; rupee hits record low

The Sensex ended 0.07 percent lower at 82,102, while the Nifty slipped 0.13 percent to 25,197.50 on September 23.

Indian markets are set to open marginally lower on Wednesday, tracking soft cues from Gift Nifty. At 7 am, Gift Nifty was trading 40 points down at 25,200, a decline of 0.16 percent.

On September 23, domestic benchmarks ended slightly in the red as worries over a steep hike in H-1B visa fees, persistent FII outflows, and uncertainty around India–US trade talks weighed on sentiment. A weak August PMI print, lower than the previous month, further dented investor confidence.

The rupee slipped to a fresh record low of 88.7 against the US dollar, pressured by visa fee concerns and trade policy uncertainty. However, markets staged a partial recovery, aided by supportive factors such as GST reforms, robust auto sales on the first day of GST 2.0, a normal monsoon, and core sector growth in August rising to a 13-month high.

The Sensex ended 0.07 percent lower at 82,102, while the Nifty slipped 0.13 percent to 25,197.50.

Sectorally, Nifty IT, FMCG, and Defence indices fell up to 1 percent, while Auto, PSU Bank, and Metal indices gained up to 1 percent. Metal shares outperformed after the Directorate General of Trade Remedies (DGTR) proposed a five-year anti-dumping duty on imports of cold-rolled non-oriented electrical steel from China.

Across Asia, equities slipped on Wednesday, echoing Wall Street losses after US Federal Reserve Chair Jerome Powell cautioned that “equity prices are fairly highly valued.” Powell added that the Fed faces a “challenging situation” and offered no clarity on the rate-cut trajectory.

Globally, investors are awaiting Friday’s release of the US personal consumption expenditures price index, the Fed’s preferred inflation gauge. Traders are also watching developments in Washington as the risk of a government shutdown looms, with lawmakers yet to reach a deal ahead of the September 30 funding deadline.