Indian shares look set to follow global peers lower on Friday as the 10-year U.S. Treasury yields continued to soar, reflecting expectations the Federal Reserve will have to raise rates sooner to keep inflation contained.
Meanwhile, RBI Governor Shaktikanta Das has called upon the Central and state governments to reduce taxes on petrol and diesel prices, saying rising fuel prices have a cost-push factor and a far-reaching impact on the economy.
Moody’s on Thursday upped India’s growth projection for FY22 to 13.7 percent from 10.8 percent estimated earlier, but warned the country’s fiscal position would pose a key credit challenge.
Benchmark indexes Sensex and the Nifty rose about half a percent and 0.8 percent respectively on Thursday to extend gains for the third day running while the rupee ended 8 paise lower at 72.43 against the U.S. dollar.
Asian markets tumbled this morning, with benchmark indexes in Australia, South Korea and Japan falling 2-3 percent, as investors fretted over high valuations, especially in the technology sector.
The dollar index held firm while oil prices held near 13-month highs. Gold prices hit their lowest in a week and headed for a second straight weekly decline.
U.S. stocks tumbled overnight as U.S. Treasury yields hit a new 52-week high after the release of a batch of largely upbeat data on GDP, jobless claims and new orders for manufactured durable goods.
The tech-heavy Nasdaq Composite slumped as much as 3.5 percent to reach its lowest closing level in nearly a month, while the Dow Jones Industrial Average lost 1.8 percent and the S&P 500 shed 2.5 percent.
European stocks ended on a subdued note Thursday as rising bond yields outweighed positive news on the vaccine front and dovish signals from the Federal Reserve.
The pan European Stoxx 600 gave up 0.4 percent. The German DAX shed 0.7 percent, France’s CAC 40 index eased 0.2 percent and the U.K.’s FTSE 100 slipped 0.1 percent.
Indian Shares Set To Fall Amid Global Selloff
2021-02-26 02:42:54
