Sensex, Nifty To Drift Lower On Weak Global Cues

Indian shares may open lower on Friday as fresh worries about the U.S.-China trade talks added to concerns about slowing global growth.

There is also some disappointment on the earnings front as Tata Motors posted the biggest quarterly loss among Indian corporates, hit by asset impairment in its U.K. subsidiary JLR.

Benchmark indexes Sensex and the Nifty gave up early gains to end on a flat note on Thursday after the RBI unexpectedly cut the repo rate by 25 bps and also changed its monetary policy stance to ‘neutral’ from the earlier ‘calibrated tightening’. The rupee ended up by 11 paise at 71.45 against the dollar.

Asian stocks slipped this morning on renewed anxiety about trade and the growth outlook, with German long-term debt yields hitting over two-year lows. The dollar held firm while oil extended losses after tumbling 2.5 percent in the previous session.

U.S. stocks closed lower overnight after CNBC reported that a Trump-Xi meeting is highly unlikely before a March 1 deadline, but the U.S. is likely to keep tariffs at 10 percent rather than raise them to 25 percent as scheduled.

The report came after White House economic adviser Larry Kudlow told Fox Business the U.S. and China have a “pretty sizable distance to go” before reaching a trade deal.

The Dow and the S&P 500 dropped around 0.9 percent, while the tech-heavy Nasdaq Composite fell 1.2 percent.

European stocks slumped on Thursday after the European Commission sharply cut its forecasts for euro zone economic growth this year and next.

The pan-European Stoxx 600 retreated 1.5 percent. The German DAX plunged 2.7 percent, France’s CAC 40 index lost 1.8 percent and the U.K.’s FTSE 100 declined 1.1 percent.

For comments and feedback contact: [email protected]

Market Analysis

Some of the best

Read More Here...

Bookmark the permalink.