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Sensex, Nifty Likely To Drift Lower As Fed Warns Of Higher Rates
(RTTNews) - Indian shares are likely to open lower on Thursday on concerns that U.S. interest rates are likely to remain for longer than previously anticipated reflecting an improved assessment of the economy.
Investors may also react to RBI data showing declining household savings and India Ratings' revised growth forecast for FY24.
Benchmark indexes Sensex and Nifty tumbled around 1.2 percent each on Wednesday, dragged down by heavyweights RIL and HDFC Bank.
The rupee jumped 20 paise to close at 83.07 against the dollar amid likely intervention by the RBI and easing crude oil prices.
Asian markets were mostly lower while the Fed's hawkish tone boosted the dollar index and U.S. Treasury yields, keeping gold prices under pressure. Oil extended overnight losses after the Fed warned of higher interest rates.
U.S. stocks declined overnight after the Fed left interest rates unchanged, as widely expected, but raised its forecast for rates at the end of next year saying that battle against inflation was far from over. The updated projections imply that rates will finish 2023 at 5.5-5.75 percent.
The tech-heavy Nasdaq Composite lost 1.5 percent to reach its lowest closing level in almost a month while the S&P 500 shed 0.9 percent and the Dow eased 0.2 percent.
European stocks advanced on Wednesday as investors reacted to positive U.K. consumer inflation and German producer price data.
The pan European STOXX 600 gained 0.9 percent. The German DAX climbed 0.8 percent, France's CAC 40 gained 0.7 percent and the U.K.'s FTSE 100 rallied 0.9 percent.
Bank Of Korea Keeps Rates Steady
European Shares Set To Open Higher Despite Rising Trade Tensions
European Economic News Preview: Germany Final Inflation Data Due
Sensex, Nifty Subdued On Trade Jitters
Australian Market Extends Early Gains In Mid-market
Asian Markets Track Wall Street Higher
Sensex, Nifty Set For Muted Open
