Indian shares look set to open higher on Thursday as U.S. Treasury yields eased and Fed Chairman Jerome Powell stuck to his dovish tone at the end of a two-day policy meeting.
Investors will also remain focused on the Covid-19 situation in the country after the government confirmed that India is headed for a second peak of coronavirus.
35,886 patients tested positive for the virus on Wednesday, marking the highest Covid-19 tally in 102 days.
Benchmark indexes Sensex and the Nifty fell over 1 percent on Wednesday while the rupee ended flat at 72.55 against the U.S. dollar.
Asian markets remain broadly higher this morning and gold gained ground while the dollar held losses against its peers ahead of Bank of England rate decision later today. Oil steadied below $65 a barrel after a four-day slide.
U.S. stocks rose overnight and yields on longer-maturity U.S. debt retreated from more than one-year high after the Federal Reserve forecast stronger economic growth and higher inflation this year but indicated it expects to keep interest rates at near-zero levels through 2023.
The central bank also reiterated its plans to continue purchasing bonds at a rate of at least $120 billion per month until “substantial further progress” has been made toward its policy goals.
The Dow rose 0.6 percent and the S&P 500 added 0.3 percent to reach new record closing highs while the tech-heavy Nasdaq Composite index edged up 0.4 percent.
European stocks closed lower on Wednesday, with chip stocks seeing some pressure after a Samsung Electronics executive warned of problems with global shortages.
The pan European Stoxx 600 slid half a percent. France’s CAC 40 index closed nearly unchanged and the U.K.’s FTSE 100 dropped 0.6 percent while the German DAX rose 0.3 percent.
Indian Shares Seen Higher On Dovish Fed
2021-03-18 02:56:48
