Sensex, Nifty May See Sluggish Start As Yields Jump After Fed Minutes

(RTTNews) - Indian shares look set to open on a sluggish note Thursday as investors fret about the impact of rising interest rates on economic growth.

Investors will also monitor oil price movements closely after U.S. crude oil prices jumped about 3 percent overnight in a post-holiday response to supply cuts announced on Monday by Saudi Arabia and Russia.

Meanwhile, a Reserve Bank of India (RBI) panel has proposed several measures for internationalization of the rupee.

Benchmark indexes Sensex and Nifty fluctuated before ending narrowly mixed on Wednesday. The rupee fell by 20 paise to close at 82.23 against the greenback.

Foreign institutional investors (FII) bought shares worth Rs 1,603.15 crore on Wednesday, while domestic institutional investors (DII) sold shares worth Rs 439.01 crore, according to provisional data from the National Stock Exchange.

Asian markets were broadly lower this morning as investors looked ahead to the release of U.S. jobs report on Friday for directional cues.

The dollar edged higher against major currencies as the prospects of rates staying higher for longer triggered a jump in Treasury yields.

U.S. stocks fell overnight as the June FOMC minutes confirmed a hawkish hold stance and data showed new orders for U.S. manufactured goods rose less than expected in May.

The Fed minutes showed that board members expect more rate hikes, but at a slower pace.

The Dow dipped 0.4 percent, while the S&P 500 500 and the tech-heavy Nasdaq Composite both eased around 0.2 percent.

European stocks slipped into the red on Wednesday after disappointing service sector data from China and Europe.

The pan European STOXX 600 declined 0.7 percent. The German DAX shed 0.6 percent, France's CAC 40 gave up 0.8 percent and the U.K.'s FTSE 100 lost 1 percent.