Indian shares look set to open on a flat note Thursday, tracking weak global markets as a hint of tapering talk from the Federal Reserve sparked a sell-off in bonds and lifted the safe-haven dollar.
Fertilizer stocks could be in focus after the government hiked fertilizer subsidy from Rs. 500 to Rs 1,200 per bag of DAP.
Benchmark indexes Sensex and the Nifty fell about half a percent on Wednesday, while the rupee dropped by 13 paise to close at 73.18 against the U.S. dollar, snapping a three-day winning streak.
Asian markets are trading mixed this morning while commodities extended declines amid concerns about inflation and potential curbs or monetary stimulus.
Oil held steady after slumping to the lowest in three weeks on concerns of Iranian supply return and data showing rising U.S. stockpiles.
U.S. stocks ended lower overnight as Treasury yields rose following the release of Fed’s April meeting minutes. Some officials said talking about tapering might be needed at an upcoming meeting if the economy continues to show signs of recovery and inflation keeps trending higher.
The Dow plunged more than 580 points before ending half a percent lower and the S&P 500 dipped 0.3 percent, while the tech-heavy Nasdaq Composite index ended flat with a negative bias.
European stocks ended Wednesday’s session sharply lower as investors grew wary of rising inflationary pressures and a sudden crash of cryptocurrencies including Bitcoin.
The pan European Stoxx 600 tumbled 1.5 percent. Germany’s DAX fell 1.8 percent, France’s CAC 40 index dropped 1.4 percent and the U.K.’s FTSE 100 gave up 1.2 percent.
Market Analysis
Sensex, Nifty Seen Opening Flat Amid Tapering Talk
2021-05-20 02:56:18
