Sensex, Nifty Likely To See Cautious Opening On Weak Global Cues

(RTTNews) - Indian shares may open a tad lower on Thursday as investors react to weak global cues and a mixed set of earnings results from Axis Bank and Tech Mahindra.

Benchmark indexes Sensex and Nifty fell around 0.8 percent each on Wednesday to extend recent losses while the rupee fell by 2 paise to close at 83.18 against the dollar.

Asian markets traded lower this morning amid lingering worries about rising U.S. Treasury yields and the ongoing Israel-Hamas war.

In a televised statement, Israeli Prime Minister Benjamin Netanyahu on Wednesday said Israel is preparing a ground invasion of Gaza but declined to any details.

The dollar hovered near a one-week high in Asian trade and benchmark U.S. 10-year Treasury yields resumed a move toward a 16-year peak of 5.0 percent briefly breached on Monday after Fed Chair Jerome Powell didn't not comment on monetary policy or economic outlook in prepared remarks before the 2023 Moynihan Lecture in Social Science and Public Policy event.

The European Central Bank announces its rate decision later today and no change in policy is expected.

Gold ticked higher after declining overnight. Oil rose slightly, after having risen nearly 2 percent in the U.S. trading session to snap a three-day losing streak.

U.S. stocks fell sharply overnight following disappointing quarterly results from Google-parent Alphabet and an uptick in Treasury yields.

The tech-heavy Nasdaq Composite plummeted 2.4 percent to log its biggest single-day loss since Feb. 21 and the S&P 500 tumbled 1.4 percent to end below the 4,200 level for the first time since May, while the narrower Dow dropped 0.3 percent.

European stocks closed mixed on Wednesday as investors reacted to Middle East tensions and a slew of earnings both in the U.S. and Europe.

The pan-European STOXX 600 ended little changed with a positive bias. The German DAX finished marginally higher, while France's CAC 40 and the U.K.'s FTSE 100 both rose about 0.3 percent.