logo
Plus   Neg
Share
Email

Sensex, Nifty Seen Lower As US-China Trade Talks Sour

Indian shares may open flat to slightly lower on Wednesday amid reports of fault lines emerging in ongoing U.S.-China trade talks.

The dollar firmed up ahead of the Fed's interest-rate decision while oil retreated from a four-month high on concerns that trade talks between the United States and China have stalled.

Benchmark indexes Sensex and the Nifty climbed 0.7 percent and 0.6 percent, respectively on Tuesday to extend gains for a seventh straight session, while the rupee snapped its six-day rally to end down by 43 paise at 68.96 against the dollar.

Global brokerage Goldman Sachs upgraded its view on India to "overweight" and placed a 12-month target of 12,500 for the Nifty, citing better Q3 earnings and pick-up in FII flows.

Asian stocks got off to a cautious start this morning, but held near six-month high on expectations the Fed will stick to a dovish stance when it ends a two-day policy meeting later today.

Meanwhile, ahead of a Brussels summit on Thursday, British Prime Minister Theresa May is expected to write to EU President Donald Tusk with a plan for delaying Brexit beyond March 29.

Overnight, U.S. stocks ended narrowly mixed, giving up earlier gains on a Bloomberg report that China is pushing back against U.S. demands in trade negotiations.

European markets rose on Tuesday despite Brexit-related uncertainty and caution ahead of key central bank meetings.

The pan European Stoxx 600 gained 0.6 percent. The German DAX climbed 1.1 percent, France's CAC 40 index rose 0.2 percent and the U.K.'s FTSE 100 added 0.3 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT