Indian shares look set to open on a flat note Thursday amid weakness in other Asian markets and the impending weekly options expiry. Given an extended weekend ahead, trading volumes are likely to remain thin.
Swiss brokerage UBS Securities has revised upwards its India GDP growth forecast for the current fiscal to 9.5 percent from 8.9 percent in September, but warned that inflation could be higher than the RBI’s upper bound comfort level of 6 percent in the March 2022 quarter.
Benchmark indexes Sensex and the Nifty ended down about half a percent on Wednesday to extend losses for a second straight session, while the rupee settled 9 paise higher at 74.28 against the greenback.
Asian markets traded mostly lower this morning as traders weighed inflation risks and awaited news on who will be the next chair of the Federal Reserve.
The dollar hovered below a 16-month peak and U.S. bond yields retreated from a three-week high, helping gold prices push higher.
Oil extended overnight declines after Reuters reported that the United States was asking major oil consumers like China and Japan to consider a coordinated release of oil reserves to lower prices.
U.S. stocks ended lower overnight amid inflation fears, supply chain concerns and uncertainty over early rate hikes by the Federal Reserve.
The Dow dropped 0.6 percent, while the tech-heavy Nasdaq Composite and the S&P 500 both eased around 0.3 percent.
European stocks ended on a flat note Wednesday as rising inflation and a fresh surge in Covid-19 cases in Europe increased the downside risks to economic recovery.
The pan European Stoxx 600 edged up 0.1 percent. The German DAX and France’s CAC 40 index saw marginal gains, while the U.K.’s FTSE 100 dipped half a percent as soaring inflation boosted rate-hike bets.
Market Analysis
Sensex, Nifty Seen Opening Flat In Cautious Trade
2021-11-18 03:04:09
