BENGALURU: Indian shares were set to open lower on Wednesday, as rising recession fears in the United States offset cautious optimism in domestic markets in a busy earnings week.

India’s NSE stock futures listed on the Singapore exchange were down 0.19% at 17,752.50 as of 8:00 a.m. IST.

The Nifty 50 has risen in the two sessions this week, adding over 0.8%, as earnings trickle in.

Maruti Suzuki India Ltd, Bajaj Finance Ltd , SBI Life Insurance Company Ltd, HDFC Life Insurance Company Ltd, L&T Technology Services Ltd are among the companies reporting their quarterly earnings on Wednesday.

Global cues were weak, with Wall Street equities closing sharply lower overnight on soft economic data and disappointing earnings.

US Consumer confidence fell to a nine-month low in April, a survey showed, intensifying concerns of a potential recession in the near future.

Mixed earnings and outlook from several companies, including General Motors, PepsiCo, and McDonald’s also dragged US markets. Troubled lender First Republic Bank tumbled nearly 50% after reporting a plunge in deposits in March quarter. Meanwhile, Asian equities remained subdued.

“The rate hike cycle in the US and European nations is likely to continue, which may further push key economies into a slowdown phase,” said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.

The odds of a 25 basis points rate hike by US Federal Reserve at the upcoming meeting on May 3, stands at 79.3%. While analysts reiterated positive view on Indian equities in the near-term, they cautioned the need to focus on stock and sector selection amid weak global cues.

Indian shares rise on improved sentiment amid earnings rush

Hindustan Unilever Ltd, Axis Bank Ltd, ACC Ltd, Wipro Ltd, Tech Mahindra Ltd, Ultratech Cement Ltd and Kotak Mahindra Bank Ltd are among the companies due to report their quarterly earnings this week.