BENGALURU (Reuters) -Auto stocks weighed on Indian shares at the open on Wednesday, ahead of key U.S. inflation data that could influence the size of a likely U.S. rate cute later this month.
The Nifty 50 index was down 0.11% at 25,012.5 points, while the S&P BSE Sensex shed 0.09% at 81,845.2, as of 9:24 a.m. IST.
Ten of the 13 major sectors logged losses. Auto stocks lost 1.2%, with Tata Motors dropping 4% to become the top laggard on the Nifty 50 and auto index.
“Rising discounts, moderating growth and lack of any new ICE/hybrid launch could result in significantly weaker financials for (Tata Motors’ subsidiary) JLR,” UBS said.
The brokerage maintained a “sell” rating on Tata Motors and expects the stock to drop about 21% in the next 12 months from Sept. 9 closing level.
The broader, more domestically focussed small- and mid-caps were up about 0.2% each.
Asian markets were subdued, with the MSCI Asia ex-Japan index shedding about 0.3%. [MKTS/GLOB]
Meanwhile, concerns over softening global demand sent Brent crude futures to their lowest levels since December 2021 on Tuesday and added to investor caution, ahead of the much-awaited U.S. inflation report.
The data is expected to show inflation drifting closer to the Federal Reserve’s targetted 2%, which could allow the U.S. central bank the opt for an aggressive 50-basis point (bps) rate cut next week, if required.
Markets are, however, pricing in a 66% chance of a 25 bps rate cut at the Fed’s meeting on Sept. 18, according to CME FedWatch.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.