Sensex, Nifty Seen Slightly Higher As Dollar And Yields Pull Back

(RTTNews) - Indian shares are seen opening flat to slightly higher on Friday as a sell-off in global equities continues.

Concerns mounted over China's real estate sector after property developer Evergrande filed for bankruptcy protection in a U.S. court.

Closer home, the Indian economy is gathering momentum in the second quarter, though inflation would continue to average above the central bank's comfort zone of 6 percent, according to an article published in the RBI's monthly bulletin.

Benchmark indexes Sensex and Nifty fell around half a percent each on Thursday, reflecting weak global sentiments.

The rupee closed at a record low of 83.15 against the dollar on China concerns and hawkish Fed minutes.

Asian markets traded mostly lower this morning while oil and gold prices inched higher amid a pullback in the dollar index and yields.

U.S. stocks fell for a third consecutive session overnight as yields on long-term Treasury Notes climbed to a 16-year high on fears of further interest rate hikes by the Federal Reserve.

New jobless claims data pointed to a still tight labor market and a gauge of regional manufacturing activity rebounded in August to show its first positive reading in nearly a year, keeping alive fears of interest rates remaining higher for longer.

The Dow and the S&P 500 both dropped around 0.8 percent, while the tech-heavy Nasdaq Composite shed 1.2 percent.

European stocks also fell for a third day running on Thursday amid lingering China, inflation and interest-rate concerns. The pan European STOXX 600 gave up 0.9 percent.

The German DAX declined 0.7 percent, France's CAC 40 slipped 0.9 percent and the U.K.'s FTSE 100 ended 0.6 percent lower.