Sensex, Nifty To Open On Cautious Note Ahead Of Q1 GDP Data

Indian shares are seen opening on a cautious note Thursday ahead of the release of Q! GDP data and the monthly derivative expiry.

The losses, if any, may remain limited as another round of soft U.S. data added to recent optimism about the outlook for interest rates.

Benchmark indexes Sensex and Nifty gave up early gains to end on a flat note Wednesday, while the rupee finished marginally lower at 82.73 against the dollar.

Asian markets were subdued this morning after official data showed China’s manufacturing activity shrank for a fifth straight month in August and non-manufacturing activity hit another low for the year – adding to the gloomy outlook.

Elsewhere, Japan’s industrial production fell more than expected in July while retail sales increased 2.1 percent from the previous month.

The dollar weakened alongside sluggish Treasury yields, helping lift gold prices. Oil prices were marginally lower on China demand concerns.

U.S. stocks rose for a fourth consecutive session overnight and the dollar slipped as weak growth and labor market data raised hopes the Fed will not raise rates again this year.

While private payrolls posted the smallest gain in five months last month, a revised reading showed the U.S. economy expanded by 2.1 percent in the second quarter of 2023, down from the initial estimate of 2.4 percent.

The tech-heavy Nasdaq Composite rose half a percent, the S&P 500 gained 0.4 percent and the Dow added 0.1 percent.

European stocks fell on Wednesday as signs of sticky inflation in Germany and Spain added to bets that the European Central Bank will raise interest rates next month.

The pan European STOXX 600 slid 0.2 percent. The German DAX eased 0.2 percent and France’s CAC 40 dipped 0.1 percent while the U.K.’s FTSE 100 inched up 0.1 percent.