Sensex, Nifty Seen Tad Lower At Open

(RTTNews) - Indian shares look set to open on a cautious note Thursday due to mixed global cues and concerns surrounding elevated valuations in the broader market.

Inflation worries may also haunt investors as oil extended gains after rallying nearly 3 percent to a four-month high on Wednesday, benefiting from Ukrainian attacks on Russian refineries and data showing an unexpected draw in U.S. inventories.

Benchmark indexes Sensex and Nifty fell around 1.2 percent and 1.5 percent, respectively on Wednesday amid the Fed rate cut uncertainty and a SEBI warning about the froth that has built up around small, medium, and microcap valuations.

The rupee dropped 5 paise to close at 82.85 against the dollar.

Asian markets traded mixed this morning, gold held steady, and the dollar consolidated against major peers ahead of key U.S. retail sales, producer price inflation and weekly jobless claims data, due out later in the day.

U.S. stocks ended mostly lower overnight as investors booked profits in chipmaker stocks and awaited cues from next week's FOMC meeting. Oil prices jumped to a four-month high, reviving inflation concerns.

The tech-heavy Nasdaq Composite gave up half a percent and the S&P 500 shed 0.2 percent while the Dow inched up marginally to extend gains for the third consecutive session. European stocks closed broadly higher on Wednesday as new data signalled the British economy could be on its way out of recession.

The pan European STOXX 600 gained 0.2 percent. France' CAC 40 rose 0.6 percent and the U.K.'s FTSE 100 added 0.3 percent while the German DAX ended flat with a negative bias.