Indian shares may open lower on Wednesday, tracking weakness in other Asian markets after the latest data from China showed broad-based inflation pressure on both the production side and the consumer side.
China's factory-gate prices grew at the fastest pace in 26 years in October due to imported inflation and tight domestic supply of major energy and raw materials, while consumer inflation rose an annual 1.5 percent in the month, quickening from September's 0.7 percent rise due to factors such as weather conditions, tight supply of some goods and rising costs.
Investors will scrutinize the U.S. CPI report due out later in the day for additional cues about the outlook for interest rates heading into next year.
Benchmark indexes Sensex and he Nifty ended Tuesday's session marginally lower after two days of gains. The rupee ended almost flat at 74.02 against the dollar.
Asian markets fell broadly this morning amid the continuing troubles in China's property sector after Fantasia Holdings Group failed to make a coupon payment and said there is no guarantee that it will be able to meet its other financial obligations.
The dollar held near a one-month low against the yen, while oil traded flat despite industry data showing a surprise decline in U.S. crude stocks last week. Bitcoin held around $67,000, not far from the record high.
U.S. stocks slipped from record levels overnight as Treasuries surged, Bitcoin hit new records and data showed producer prices increased solidly in October, suggesting that high inflation could persist for a while.
The S&P 500 gave up 0.4 percent to snap an eight-day winning streak and the tech-heavy Nasdaq Composite shed 0.6 percent to snap an 11-day winning run, while the Dow eased 0.3 percent.
European stocks also retreated from a record high Tuesday amid concerns surrounding inflation and Evergrande.
The pan European Stoxx 600 fell 0.2 percent. The German DAX and France's CAC 40 index both finished marginally lower, while the U.K.'s FTSE 100 declined 0.4 percent.
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