Trading in SGX Nifty futures indicate a gap-down opening for Indian markets as expectations of an end to the largesse that helped drive a global equity rally for more than a year added to the sombre mood among investors.
Growth worries may also weigh after India Ratings, the Indian arm of global ratings agency Fitch, revised downward its economic growth forecast for India to 9.4 percent for FY22 from 9.6 percent estimated earlier, citing the slow pace of vaccination in the country.
Indian stock exchanges remained closed Thursday on account of Muharram. On Wednesday, benchmark indexes Sensex and the Nifty ended down about 0.3 percent each, while the rupee gained 11 paise to close at 74.24 against the greenback.
Asian markets were broadly lower this morning as China left its benchmark lending rate unchanged and state media scrutiny of online health care and medical beauty firms kept the focus on the government’s clampdown.
Treasuries extended gains and the dollar held around a nine-month high, while oil headed for a substantial weekly loss on concerns about weaker fuel demand as COVID-19 cases surge worldwide.
U.S. stocks ended narrowly mixed overnight as data showed initial jobless claims fell to a new pandemic-era low in the week ended August 14th, adding to concerns the Federal Reserve could begin tapering stimulus this year.
The Dow slipped 0.2 percent while the tech-heavy Nasdaq Composite and the S&P 500 both inched up 0.1 percent.
European stocks fell sharply on Thursday amid uncertainty over the spread of the coronavirus and the Fed’s taper plans.
The pan European Stoxx 600 declined 1.5 percent. The German DAX tumbled 1.3 percent, France’s CAC 40 index plunged 2.4 percent and the U.K.’s FTSE 100 lost 1.5 percent.
Market Analysis
Sensex, Nifty Set To Tumble On Fed Taper Talk
2021-08-20 03:04:25
