Sensex, Nifty Look Set To Extend Recent Losses

(RTTNews) - Indian shares are likely to open on a tepid note Friday, mirroring weak global cues amid concerns over the Federal Reserve's continued policy tightening and rising COVID cases in China.

A new analysis revealed that China is likely experiencing 1 million COVID infections and 5,000 virus deaths every day.

Tech stocks may see heavy losses after chipmaker Micron Technology unveiled a dismal outlook for the current quarter and new data showing a resilient U.S. economy revived worries about the Federal Reserve's attempts to battle inflation.

Benchmark indexes Sensex and Nifty fell around 0.4 percent each on Thursday to extend losses for a third day running while the rupee rose by 8 paise to close at 82.76 against the dollar.

Asian markets followed Wall Street lower, and the Japanese yen was marginally lower against the dollar while gold traded flat after having fallen more than 1 percent on Thursday.

Oil rose over 1 percent in Asian trade after snapping a three-day winning streak in the previous session.

U.S. stocks fell sharply overnight and the dollar rose, as signs of a tight labor market and an upward revision to the U.S. Q3 growth rate heightened expectations of further Fed tightening.

The tech-heavy Nasdaq Composite tumbled 2.2 percent to its lowest closing level in well over a month, while the Dow dropped 1.1 percent and the S&P 500 shed 1.5 percent.

European stocks closed lower on Thursday as data showed U.K. GDP shrank more than initial estimated in the third quarter.

The pan European STOXX 600 declined 1 percent. The German DAX lost 1.3 percent, France's CAC 40 index tumbled 1 percent and the U.K.'s FTSE 100 eased 0.4 percent.