Sensex, Nifty Set For Flat Open

Indian shares may open on a flat note Friday as investors weigh positive global cues against growth concerns.

S&P Global Ratings on Thursday cut India’s GDP growth forecast for the current fiscal to 9.5 percent from 11 percent estimated earlier, saying that a severe second COVID-19 outbreak in April and May led to sharp contraction in economic activity.

Another U.S.-based rating agency Moody’s has cut India’s growth estimate for 2021 calendar year sharply to 9.6 percent from 13.9 percent projected earlier.

Inflation worries may also weigh as oil prices held close to their highest in almost three years, helped by drawdowns in U.S. inventories and doubts about the future of the 2015 Iran nuclear deal.

Benchmark indexes Sensex and the Nifty rose about 0.7 percent each on Thursday, while the rupee settled 9 paise higher at 74.18 against the greenback, extending gains for the second day.

Asian markets rose this morning on economic optimism and the dollar held near multi-month highs ahead of key U.S. inflation data, while the benchmark 10-year U.S. Treasury yield edged up to 1.50 percent.

U.S. stocks rose overnight, as President Biden and a group of senators agreed on a $1 trillion infrastructure plan, and positive reports on jobless claims and durable goods orders reflected an improving economy.

The tech-heavy Nasdaq Composite gained 0.7 percent and the S&P 500 added 0.6 percent to reach new record closing highs, while the Dow rallied 1 percent.

European stocks advanced on Thursday on the back of buoyant Eurozone economic data and Bank of England Governor Bailey’s dovish comments.

The pan European Stoxx 600 gained 0.9 percent. The German DAX inched up 0.9 percent, France’s CAC 40 index climbed 1.2 percent and the U.K.’s FTSE 100 rose half a percent.

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