Sensex, Nifty Set To Extend Losses As Yields Surge

(RTTNews) - Indian shares may open lower on Friday, tracking weak global markets on concerns about the impact the aggressive rate increases will have on the global economy.

After a slew of hawkish central bank decisions, economists now expect the Reserve Bank of India (RBI) to raise the repo rate by 50 basis points next week.

IT stocks may come under increased selling pressure after IT major Accenture forecast first-quarter revenue below estimates, citing reduced IT spending and rising inflation.

Benchmark indexes Sensex and the Nifty fell around half a percent each on Thursday to extend losses for a second day running while the rupee lost 1.1 percent to close at a record low of 80.86 per dollar.

Asian markets fell across the board this morning and headed for a sixth weekly decline, as Treasury yields surged to fresh multi-year highs amid signs of a longer tightening cycle.

A dollar gauge held near a record high and gold fluctuated while oil headed toward a fourth weekly loss.

U.S. stocks ended lower for a third straight session overnight as investors fretted about the possibility of a recession and further volatility in stock and bond markets.

The Dow shed 0.4 percent and the S&P 500 gave up 0.8 percent to hit three-month closing lows, while the tech-heavy Nasdaq Composite fell 1.4 percent to its lowest closing level in well over two months.

European stocks slumped on Thursday as the Swiss National bank, the Norges Bank and the Bank of England all raised rates and a measure of Eurozone consumer confidence declined in September.

The pan European Stoxx 600 fell 1.8 percent. The German DAX lost 1.8 percent, France's CAC 40 index tumbled 1.9 percent and the U.K.'s FTSE 100 declined 1.1 percent.