Indian shares look set to open on a flat note Thursday, as investors react to muted global cues, falling oil prices and the Fed’s assurances that inflation pressures won’t last. Trading may turn volatile later in the day amid the weekly option expiry.
Benchmark indexes Sensex and the Nifty ended up around 0.3 percent on Wednesday after a volatile session. The rupee fell by 10 paise to close at 74.59 against the greenback, snapping its three-day winning streak.
Asian markets were trading mixed after China’s second-quarter GDP growth figures came in slightly below expectations. Gold held near four-month highs as the dollar retreated from recent peaks and U.S. bond yields hit five-week lows.
Oil extended overnight losses as the Organization of Petroleum Exporting Countries (OPEC) moved to sort out its impasse with the United Arab Emirates (UAE).
U.S. stocks fluctuated before ending narrowly mixed overnight as Fed Chair Jerome Powell reiterated that “substantial further progress” towards the Fed’s goals of maximum employment and price stability is “still a ways off” and that there will be “advance notice” before the Fed makes any changes to its asset purchase program.
His comments came as new data showed prices paid to U.S. producers rose in June by more than expected.
European stocks ended broadly lower on Wednesday, with weak Eurozone industrial production data and inflation worries weighing on markets.
The pan European Stoxx 600 ended flat with a negative bias. The German DAX and France’s CAC 40 index both finished marginally lower while the U.K.’s FTSE 100 dropped half a percent.
Market Analysis
Sensex, Nifty Seen Opening On Flat Note
2021-07-15 03:02:09
