Sensex, Nifty Set To Extend Losses As Traders Pare Rate-cut Bets

(RTTNews) - Indian shares may open lower on Thursday, tracking weak cues from global markets on concerns that the Fed and ECB won't lower rates as early as previously anticipated.

Meanwhile, Reserve Bank of India Governor Shaktikanta Das on Thursday said on the sidelines of the World Economic Forum Annual Meeting in Davos that the Indian economy is likely to hit a record growth rate of 7 percent in the next fiscal.

Inflation is steadily moderating and the central bank is confident of achieving the 4 percent target at the earliest, PTI quoted him as saying.

Benchmark indexes Sensex and Nifty fell over 2 percent each on Wednesday to mark their biggest single-day percentage losses since June 2022. The rupee settled one paise lower at 83.13 against the dollar.

Asian markets traded mixed this morning while the dollar held near a one-month high as dovish Fed bets receded.

Gold was muted after declining around 1 percent on Wednesday. Oil edged higher as OPEC forecast relatively strong growth in global oil demand over the next two years.

U.S. stocks fell overnight to extend losses from the previous session as strong December retail sales data along with an unexpected uptick in industrial production in the month added to anxiety about the outlook for interest rates.

Resilient consumer spending helped propel the economy in recent weeks, offsetting weakness in other sectors like manufacturing, the Federal Reserve said in its Beige Book survey.

The Dow slipped 0.3 percent to reach its lowest closing level in almost a month while the S&P 500 and the tech-heavy Nasdaq Composite both shed around 0.6 percent.

European stocks closed notably lower on Wednesday after several ECB officials warned that markets are getting ahead on rate cut expectations.

The pan-European STOXX 600 fell 1.1 percent. The German DAX gave up 0.8 percent, France's CAC 40 declined 1.1 percent and the U.K.'s FTSE 100 lost 1.5 percent.