Nifty, Sensex set to open Lower amid Sell off in Global Markets — Benchmark indices BSE Sensex and NSE’s Nifty 50 are set to open lower on Thursday in line with global markets. Asian share markets sank in a sea of red after US stocks suffered its worst drubbing in eight months.
Asia markets fell sharply on Thursday morning, with the stock indexes in Shanghai, Hong Kong and Tokyo all down more than 3 percent.
President Donald Trump knocked the Federal Reserve for continuing to raise interest rates despite some recent market turbulence.
The markets are having a rough adjustment to the return of the Chinese markets are the week-long holiday. The cut in the required reserves failed to lift investor sentiment. The Shanghai and Shenzhen Composites fell almost 4%, and the yuan slid nearly 0.8%. It is an unusually large decline for the closely managed currency.
The S&P BSE Sensex fell 0.3 percent or 125 points to 35,044 and the NSE Nifty 50 Index declined 0.74 percent or 78 points to 10,520.
In global markets, Asian shares struggled after benchmark U.S. Treasury yields surged to a seven-year high and strong economic data fanned concerns about inflation and the risk of faster-than-expected interest rate rises. The surge in Treasury yields has also prompted a rise in government bond yields across the globe.
Crude Oil prices fell from four-year highs reached the previous session, pressured by rising US inventories and after sources said Russia and Saudi Arabia struck a private deal in September to raise crude output. Brent crude oil futures were trading at $85.85 per barrel, down 44 cents, or 0.5%, from their last close. Brent on Wednesday hit a four-year high of $86.74 a barrel. US WTI crude futures were down 30 cents, or 0.4%, at $76.11 a barrel.
Global gold prices hit highest in more than a week on Wednesday as the dollar softened and demand for the safe-haven metal got a boost on concerns surrounding Italy’s plans to tackle budgetary deficit. Risk appetite was hit after European Union (EU) officials expressed concerns about Italy’s budget plan, which would widen the deficit significantly.
Indian equity benchmarks declined after the rupee breached 73 per dollar mark for the first time.
The S&P BSE Sensex fell 0.5 percent or 198 points to 36,628 and the NSE Nifty 50 Index declined 0.6 percent or 71 points to 10,937.
Japan’s Nikkei hit a 27-year high on Friday, taking heart from a boost for the dollar after the Federal Reserve chairman said he did not expect a near-term recession, and strong gains on Wall Street overnight.