Indian shares look set to open sharply lower on Friday as a 50 basis point rate hike at the May FOMC meeting appears a near certainty.
IT and other growth stocks may come under renewed selling pressure after a jump in Treasury yields.
Energy stocks could also be in focus as oil prices remain on track for near 4 percent weekly decline on demand concerns.
Benchmark indexes Sensex and the Nifty jumped around 1.5 percent each on Thursday to extend gains for a second straight session, while the rupee gained 15 paise to close at 76.15 against the greenback.
Asian markets were broadly lower this morning, the dollar rallied and yields on five-year U.S. notes climbed to their highest since late 2018 at 3.048 percent after Fed Chair Powell outlined his most aggressive approach to taming inflation to date.
On the other hand, ECB President Christine Lagarde said future steps “will depend on the incoming data and (the ECB’s) evolving assessment of the outlook”.
U.S. stocks pulled back sharply overnight, the dollar gained and Treasury yields rose across the curve after Fed Chair Jerome Powell said he saw merit in “front-end loading” policy moves, including a 50 basis point rate hike at the May FOMC meeting.
The tech-heavy Nasdaq Composite tumbled 2.1 percent to reach its lowest closing level in over a month, while the Dow gave up 1.1 percent and the S&P 500 shed 1.5 percent.
European stocks closed higher Thursday on the back of strong earnings. The pan European Stoxx 600 gained 0.3 percent.
The German DAX rallied 1 percent and France’s CAC 40 index surged 1.4 percent while the U.K.’s FTSE finished marginally lower, weighed down by underwhelming production updates from mining companies.
Market Analysis
Sensex, Nifty Set To Tumble On Powell Comments
2022-04-22 03:07:48
