Indian shares are set to open lower on Friday, tracking weak global markets as investors await the release of U.S. consumer inflation data later in the day that could influence the Federal Reserve’s rate-hike roadmap for fighting inflation.
Concerns about rising crude prices and persistent capital outflows may also weigh on sentiment, heading into the weekend.
Benchmark indexes Sensex and the Nifty rose sharply on Thursday to snap a four-day losing streak while the rupee slipped 8 paise to close at ?77.76 against the greenback.
Asian markets followed Wall Street lower, the dollar held at a two-week high against the euro on the back of surging bond yields, while oil prices dipped but still hovered near three-month highs as Shanghai and Beijing unveiled fresh activity restrictions.
U.S. stocks fell sharply overnight as the ECB’s decision to tighten monetary policy in response to inflation sent yields higher.
The Dow tumbled 1.9 percent, the tech-heavy Nasdaq Composite lost 2.8 percent and the S&P 500 declined 2.4 percent.
European stocks also ended lower on Thursday as the European Central Bank downgraded its growth forecasts and revised up its inflation projections.
The ECB said it would end its massive bond-buying stimulus by the end of June and begin hiking interest rates on July 21 for the first time in 11 years, followed by another hike in September.
The pan European Stoxx 600 lost 1.4 percent. The German DAX fell 1.7 percent, France’s CAC 40 index gave up 1.4 percent and the U.K.’s FTSE 100 dropped 1.5 percent.
Sensex, Nifty Set For Steep Selloff
2022-06-10 02:59:15
