Sensex, Nifty Set To Drift Lower As Inflation Worries Mount

(RTTNews) - Indian shares may drift lower at open on Thursday, as a surprisingly strong German inflation figure and signs of stronger inflationary pressures in the United States brought focus back on interest-rate rises.

The outcome of the polls in Tripura, Meghalaya and Nagaland as well as February auto sales data may sway sentiment as the day progresses.

Benchmark indexes Sensex and Nifty jumped around 0.8 percent and 0.9 percent, respectively on Wednesday after eight consecutive sessions of losses.

The rupee added 8 paise to close at 82.50 against the dollar.

Asian markets traded mixed this morning, while the dollar and bond yields rose after Fed officials Raphael Bostic and Neel Kashkari reinforced their hawkish stance. Oil and gold prices were slightly lower in Asian trading.

U.S. stocks fluctuated before closing mostly lower overnight and the yield on the 10-year note reached 4 percent for the first time since November, as data showed U.S. manufacturing contracted for a fourth straight month in February and the prices-paid measure hit its highest level since September.

Home improvement retailer Lowe 's issued weak FY23 revenue guidance, adding to the downbeat sentiment. The tech-heavy Nasdaq Composite gave up 0.7 percent and the S&P 500 dipped half a percent, while the Dow finished marginally higher.

European stocks ended Wednesday's session higher as investors weighed upbeat Chinese economic data against hawkish remarks by ECB and Bank of England officials.

The pan European STOXX 600 declined 0.7 percent. The German DAX dropped 0.4 percent and France's CAC 40 index shed half a percent while the U.K.'s FTSE 100 gained half a percent.