Sensex, Nifty Set For Sharp Rebound After BoE Intervention

(RTTNews) - Indian shares look set to open sharply higher on Thursday after six days of continued selloff. Global risk sentiment improved somewhat as BoE's bond market intervention triggered a global rally in government debt.

The focus now shits to the RBI's monetary policy committee decision on Friday, with a 50-bps rate hike likely.

Benchmark indexes Sensex and Nifty fell around 0.9 percent each on Wednesday to extend losses for a sixth straight session, while the rupee plunged 37 paise to close at a record low of 81.90 against the greenback.

Asian markets followed Wall Street higher this morning, while the dollar index held steady after Atlanta president Raphael Bostic backed raising rates by a further 1.25 percentage points by the end of this year.

Gold faced resistance around the $1,650 per ounce level, while oil prices fell slightly after a two-day rally.

U.S. stocks bounced back overnight, bond yields eased, and the dollar pulled back after the Bank of England (BoE) said it would buy long-dated government bonds on "whatever scale is necessary" to address dysfunction in the gilt market.

The Dow climbed 1.9 percent, the tech-heavy Nasdaq Composite rallied 2.1 percent and the S&P 500 added 2 percent.

European stocks reversed initial losses to end higher on Wednesday as the BoE stepped into bond market and suspended its planned sale of gilts in response to turmoil stemming from adverse reaction to the British government's fiscal plans.

The pan European Stoxx 600 gained 0.3 percent. The German DAX rose 0.4 percent, France's CAC 40 index inched up 0.2 percent and the U.K.'s FTSE 100 gained 0.3 percent.