Indian shares are seen opening lower on Friday as investors react to a spike in bond yields, the dollar’s strength in overseas markets and surging crude oil prices after OPEC and its allies agreed to keep production unchanged into April.
Meanwhile, 71 percent of Indian business leaders are optimistic about the economy’s rebound to higher growth in 2021, when compared to the global average of 57 percent for the world economic recovery, says Grant Thornton International Business Report.
Benchmark indexes Sensex and the Nifty fell over 1 percent on Thursday to snap a three-day rally, while the rupee ended down 11 paise at 72.83 against the U.S. dollar.
Asian markets fell this morning and the dollar held firm near three-month highs while gold hit its lowest level in nearly nine months and headed for a third straight weekly decline.
Oil extended overnight gains to rally toward $65 a barrel after OPEC+ chose not to relax supply curbs and stick with current quotas for April with some exceptions.
U.S. stocks tumbled overnight as treasury yields spiked in reaction to comments by Federal Reserve Chair Jerome Powell that the reopening of the economy could “create some upward pressure on prices.”
The Fed chief, however, said he expects the increase in inflation to be “transitory” and stressed there is “a lot of ground to cover” before price growth reaches a sustainable level above the Fed’s 2 percent target.
The Dow Jones Industrial Average and the S&P 500 slumped 1.1 percent and 1.3 percent, respectively to their lowest closing levels in a month, while the tech-heavy Nasdaq plunged 2.1 percent to a two-month closing low.
European stocks closed mostly lower on Thursday, with concerns about inflation and high valuations keeping investors nervous.
The pan European Stoxx 600 eased 0.4 percent. The German DAX slipped 0.2 percent and the U.K.’s FTSE 100 shed 0.4 percent while France’s CAC 40 index ended on a flat note.
Indian Shares Set To Follow Global Peers Lower
2021-03-05 02:53:09
