Sensex, Nifty Set To Extend Losses; RBI Meeting In Focus

(RTTNews) - Indian shares look set to open on a weak note Friday, with weak global cues and caution ahead of the RBI's monetary policy meeting likely to keep underlying sentiment cautious.

Global sentiment remains fragile in the wake of rising concerns surrounding inflation and the growth outlook.

Amid increased pressure on the rupee, the Reserve Bank of India (RBI) is seen hiking the repo rate by 50 bps later today.

Benchmark indexes Sensex and the Nifty ended modestly lower on Thursday to extend losses for the seventh consecutive session, while the rupee settled 13 paise higher at 81.80 after the RBI reportedly sold dollars via state-run banks.

Asian markets traded in the red this morning and headed for their worst month since the onset of the COVID-19 pandemic amid the looming global recession.

There was some relief on the data front, with Chinese manufacturing sector unexpectedly returning to growth in September.

Gold edged higher on dollar weakness but was on course to post its sixth straight monthly decline. Oil prices dropped after touching the $90 per barrel mark on Thursday.

The United States imposed new sanctions Thursday against several companies that facilitate trade in Iranian oil and petrochemical products.

Analysts are divided whether the OPEC+ may decide to keep current output levels or even cut production to bolster prices.

U.S. stocks suffered heavy losses overnight, as bond yields resumed their upward climb and better-than-expected jobless claims, 2Q core PCE, a measure of inflation, and personal consumption numbers paved way for more aggressive tightening from the Federal Reserve.

The Dow lost 1.5 percent and the S&P 500 tumbled 2.1 percent to close at its lowest level since late 2020, while the tech-heavy Nasdaq Composite plummeted 2.8 percent.

European stocks tumbled on Thursday as the impact of the Bank of England's bond market intervention faded, and German inflation posted the highest reading since December 1951.

The pan European Stoxx 600 declined 1.7 percent. The German DAX lost 1.7 percent, France's CAC 40 index fell 1.5 percent and the U.K.'s FTSE 100 dropped 1.8 percent.