Sensex, Nifty Likely To See Muted Start On Global Cues

(RTTNews) - Indian shares are seen opening a tad lower on Thursday, tracking weak cues from global markets amid signs of economic stress in China and uncertainty about the outlook for U.S. interest rates.

Adani Group stocks could be in focus after its promoters raised around Rs. 9,000 crore by selling 8.1 percent of their holding in the energy-generation arm Adani Power.

Benchmark indexes Sensex and Nifty reversed early losses to end modestly higher on Wednesday despite heightened risk aversion in global markets.

Asian markets followed Wall Street lower this morning, while the dollar ticked higher against the yen on signs of a resilient U.S. economy.

Gold held steady under $1,900 per ounce, while oil traded flat after settling down around 2 percent on Wednesday despite bullish inventory data.

U.S. stocks fell for a second straight session overnight while yields on longer-term Treasuries reached their highest levels since October after the latest FOMC minutes showed that Fed officials were divided over the rate hike in July and saw "significant upside risks to inflation, which could require further tightening of monetary policy."

In economic releases, housing starts for July showed positive momentum while U.S. industrial production returned to growth after two straight months of decline.

The Dow dropped half a percent, the S&P 500 shed 0.8 percent and the tech-heavy Nasdaq Composite lost 1.2 percent.

European stocks ended mixed on Wednesday, as more disappointing Chinese economic data and concerns over the health of the U.S. banking sector offset positive Eurozone GDP, industrial output and U.K. inflation readings.

The pan European STOXX 600 closed flat with a negative bias. The German DAX edged up 0.1 percent, while France's CAC 40 slipped 0.1 percent and the U.K.'s FTSE 100 eased 0.4 percent.