Indian shares look set to open lower on Thursday, tracking a rise in bond yields and dollar after the U.S. Federal Reserve brought forward its projections for the first post-pandemic interest rate hikes.
Benchmark indexes Sensex and the Nifty ended Wednesday’s session down about half a percent while the rupee fell marginally to close at 73.32 against the greenback.
Asian markets followed Wall Street lower this morning and oil prices dipped on dollar strength, while gold steadied after capping the biggest drop in five months.
U.S. stocks fell overnight as the Federal Reserve raised inflation expectations and forecast rate hikes in 2023 as economic activity heats up. Eleven Fed officials forecast at least two hikes by the end of 2023, while seven officials expect a rate hike as soon as 2022.
The Dow dropped 0.8 percent, the S&P 500 shed half a percent and the tech-heavy Nasdaq Composite slipped 0.2 percent.
European stocks ended mixed on Wednesday before the release of the Fed decision. The pan European Stoxx 600 rose 0.2 percent to hit another record high.
France’s CAC 40 index and the U.K.’s FTSE 100 both edged up around 0.2 percent while the German DAX eased 0.1 percent.
Market Analysis
Sensex, Nifty Set To Fall On Fed’s Hawkish Surprise
2021-06-17 02:43:47
