Indian shares are set to rebound from two days of losses on Thursday, as crude prices plummeted to a seven-month low in New York overnight and the government announced a steep hike in petrol prices, easing concerns pertaining to the twin problems of widening current account deficit and fiscal deficit.
Having said that, Asian markets are trading on a mixed note as nervous investors await the outcome of a summit in Brussels to see if the "informal" meeting will reach any conclusions on Greece. Sentiment remains weak after Hewlett-Packard forecast fiscal third-quarter profit that missed estimates and a private sector survey signaled China's manufacturing activity contracted at a faster pace in May.
U.S. stocks turned in a mixed performance overnight, as worries about the financial situation in Europe rendered the mood a bit bearish, offsetting data showing a bigger than expected increase in U.S. home sales in April. Also, traders kept a close eye on developments in Europe as leaders held a closely watched summit in Brussels. The Dow edged down 0.1 percent, but the tech-Nasdaq rose 0.4 percent and the S&P 500 slid 0.2 percent.
European stocks saw significant weakness, with the German DAX, France's CAC 40 and the U.K.'s FTSE 100 tumbling more than 2 percent each.
Back home, shares fell on Wednesday, extending the previous session's sharp sell-off, as the rupee continued its downward spiral, breaching the 56 mark against the dollar amid a weaker euro and persisting domestic concerns over slowing economic growth and a widening fiscal deficit.
Extremely weak global cues also dented investor sentiment after Greek Prime Minister Lucas Papademos said the risk of Greece leaving the euro is a "real" threat. The benchmark BSE Sensex ended the session down 78 points or 0.49 percent at 15,948, while the broader Nifty index fell by 25 points or 0.51 percent to 4,836.
by RTT Staff Writer
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