Sensex, Nifty Set To Open On Firm Note

Indian shares look set to open a tad higher on Thursday despite mixed global cues.

Growth optimism may prevail after Reserve Bank of India Governor Shaktikanta Das exuded confidence in the economy and said that growth impulses and the fast-moving economic indicators are strong.

Citing a slew of measures the government has taken since the pandemic struck in March 2020, Das said at the finale of the Business Standard-BFSI Summit that the country’s growth prospects remain strong despite several headwinds.

Benchmark indexes Sensex and the Nifty ended modestly lower on Wednesday to extend losses for the second day running while the rupee tumbled by 32 paise to end at 74.37 against the greenback.

Asian markets were mixed this morning, the dollar shined and U.S. Treasury yields crept higher as concerns over inflation intensified and markets started pricing in a first Fed interest rate increase by July.

Gold jumped to a five-month high and bitcoin leapt to a new record high of $69,000 before retreating, while oil traded flat after falling sharply overnight as the Energy Information Administration reported an inventory build of 1 million barrels.

U.S. stocks fell overnight and bond yields rose after jobless claims dropped to a new pandemic low and a consumer inflation report showed the largest annual increase in prices in three decades, raising speculation the Fed may lift rates sooner than expected.

The tech-heavy Nasdaq Composite index lost 1.7 percent, the S&P 500 dropped 0.8 percent and the Dow shed 0.7 percent.

European stocks closed slightly higher on Wednesday after spending much of the day’s session in negative territory on fears about liquidity woes spreading in China’s property sector.

The pan European Stoxx 600 gained 0.2 percent. The German DAX edged up 0.2 percent, France’s CAC 40 index finished marginally higher and the U.K.’s FTSE 100 added 0.9 percent.