Sensex, Nifty Set To Rise On Powell’s Dovish Tone

Indian shares are likely to open higher on Monday, tracking firm global cues and amid optimism about domestic economic growth.

The rupee may see further upside after surging 53 paise Friday to a level not seen in over 10 weeks ahead of the key speech from U.S. Federal Reserve Chair Jerome Powell.

Notwithstanding the pandemic severe shock, India’s macroeconomy is more healthy and ready for faster growth, eminent economist Ashima Goyal said on Sunday in an interview to PTI.

“Portfolio inflows into India are not only due to the quantitative easing of rich countries’ central banks, they are also attracted by India’s growth prospects. All emerging markets do not get such inflows,” the eminent economist opined.

Asian markets held steady this morning, while oil prices traded mixed after a powerful hurricane ploughed through the Gulf of Mexico. The dollar nursed losses, helping gold prices trade near their highest level in more than three weeks.

U.S. stocks ended Friday’s session on a buoyant note as Fed Chair Powell signaled the central bank is likely to begin tapering some of its easy-money policies before the end of the year but there’s “much ground to cover” before rate hikes happen.

The broad-based S&P 500 climbed 0.9 percent to close above the 4,500 mark for the first time ever, while the Dow rose 0.7 percent and the tech-heavy Nasdaq Composite rallied 1.2 percent.

European stocks also ended higher on Friday after Powell’s dovish comments and lack of a specific tapering timeline at the Jackson Hole economic symposium.

The pan European Stoxx 600 advanced 0.4 percent. The German DAX rose 0.4 percent, France’s CAC 40 index edged up 0.2 percent and the U.K.’s FTSE 100 added 0.3 percent.