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Indian Shares Poised For Soft Opening

Indian shares are seen opening lower on Friday, tracking weak Asian cues after financial giant JPMorgan Chase & Co said it suffered a $2 billion trading loss from a "poorly executed" and "poorly monitored" hedging strategy.

Having said that, investors keenly await March industrial output data for direction after recent data showed India's infrastructure output grew by a meager 2 percent in the month from a year earlier.

Indian shares fell for a third day on Thursday, with benchmark indexes Sensex and the Nifty falling 0.4 percent and 0.2 percent, respectively, as FII outflow fears continued to haunt investors despite a series of measures announced by the Reserve Bank of India to prop up the rupee, which hit a record low of 53.85 against the dollar the previous day.

On Wall Street, stocks failed to sustain early gains and mostly ended flat after a choppy ride overnight. While bargain hunting pushed up stock prices higher earlier in the session, concerns about the political uncertainty in Greece, a cautious outlook from Cisco Systems and some mixed economic data, including a report showing a slight drop in initial jobless claims in the week ended May 5th dragged the markets down as the day progressed.

The tech-heavy Nasdaq edged down 1.1 points or less than a tenth of a percent, while the Dow rose 0.2 percent and the S&P 500 added 0.3 percent.

A separate report from the Labor Department showed that import prices fell by more than expected in April, largely due to lower fuel prices, while trade data showed the U.S. trade deficit widening to $51.8 billion in March from a revised $45.4 billion in February. The trade deficit had been expected to widen to $49.5 billion from the $46.0 billion originally reported for the previous month.

by RTT Staff Writer

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