Indian shares are likely to open lower on Thursday amid mixed global cues and caution ahead of TCS’ earnings results, with the company expected to report margin contraction because of higher wage costs.
Growth worries may also return to haunt markets after Fitch Ratings cut Inia’s GDP growth forecast for the current fiscal to 10 percent from 12.8 percent estimated earlier, citing localized lockdowns during the second wave of COVID-19.
Benchmark indexes Sensex and the Nifty rose about 0.4 percent each on Wednesday to reach record highs, while the rupee fell by 7 paise to close at 74.62 (provisional) against the greenback.
Asian markets fell broadly this morning while the dollar held firm near three-month high. Gold held steady after ten-year U.S. note yields dropped briefly below 1.3 percent for the first time since February.
Oil extended losses for a third day amid concerns over whether supplies will rise after the collapse of talks among major producers.
U.S. stocks posted modest gains overnight and bond yields continued their steep descent as the minutes of the Fed’s mi-June FOMC meeting signaled the U.S. central bank was in no hurry to raise rates or scale back its attest purchase program.
Fed officials at their most recent meeting had discussed tapering but emphasized to continue assessing the economy‘s progress at coming meetings.
The Dow and the S&P 500 both rose about 0.3 percent, while the tech-heavy Nasdaq Composite inched up marginally to extend gains for the fourth day and reach a new record closing high.
European stocks rose on Wednesday after the European Commission hiked its growth forecasts for the euro area. A rebound in commodity-linked stocks and lower bond yields also offered some support.
The pan European Stoxx 600 advanced 0.8 percent. The German DAX climbed 1.2 percent, France’s CAC 40 index rose 0.3 percent and the U.K.’s FTSE 100 added 0.7 percent.
Sensex, Nifty Set To Open Lower On Weak Asian Cues
2021-07-08 02:56:27
