Indices may open on positive note

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 24 points at the opening bell.

The International Monetary Fund (IMF) has announced another cut to its gross domestic product (GDP) growth forecast for India for the current financial year, this time by 60 basis points to 6.8%. The growth downgrade reflects a "weaker-than-expected outturn in the second quarter and more subdued external demand", IMF said in the latest update to its World Economic Outlook report released on October 11.

Global markets:

Overseas, Asian stocks are trading lower on Wednesday amid concerns over the global economy. Investors are also waiting for inflation data from the U.S. due later this week.

Banks in China extended 2.47 trillion yuan ($344 billion) of new loans in September, compared with 1.25 trillion yuan in August, the country`s central bank said in a statement late Tuesday.

The Bank of Korea raised its policy rate to 3%, an increase of 50 basis points in line with expectations. Inflation in South Korea stood at 5.6% in September, above the central bank`s target.

The International Monetary Fund on Tuesday cut its global growth forecast for next year to 2.7%. The prediction is 0.2 percentage points lower than its July forecast, and suggests that 2023 will feel like a recession for millions around the world.

In US, the S&P 500 and Nasdaq ended lower on Tuesday, with indications from the Bank of England that it would support the country`s bond market for just three more days adding to market jitters late in the session.

Domestic markets:

Back home, Indian equity benchmarks tumbled on Tuesday, extending their fall for the third straight session amid weak global cues. The S&P BSE Sensex dropped 843.79 points or 1.46% to 57,147.32. The Nifty 50 index lost 257.45 points or 1.49% to 16,983.55.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,612.67 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,430.76 crore in the Indian equity market on 11 October, provisional data showed.

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