Plus   Neg

Sensex, Nifty Seen Opening Up On Dovish Fed Policy Expectations

Indian shares may open higher on Friday after steep losses in the previous session. While an overnight plunge in oil prices may help prop up sentiment at open, higher levels may attract profit booking as gulf tensions rise. Earnings concerns and foreign fund outflows may also weigh on markets ahead of the weekend.

Benchmark indexes Sensex and the Nifty fell around 0.8 percent on Thursday to snap a three-day winning streak, while the rupee declined by 15 paise to close at 68.97 against the greenback, extending losses for a third straight session.

Asian markets gained ground this morning and gold extended the previous session's rally as comments by Fed officials heightened chances of a 50 bps Fed rate cut during the July 31 meeting.

West Texas Intermediate Crude oil futures for August delivery rose nearly 2 percent this morning after the U.S. Navy has shot down an Iranian drone in the Strait of Hormuz.

President Donald Trump told reporters the USS Boxer took defensive action after the drone closed to within 1,000 yards of the amphibious assault ship and ignored multiple calls to stand down.

The downing of the Iranian drone comes a month after the Islamic Revolutionary Guards Corps shot down an unmanned U.S. surveillance drone.

WTI futures ended down about 2.6 percent overnight as resumption of service in the Gulf of Mexico region raised concerns about excess supply in the market.

U.S. stocks fluctuated before closing higher overnight as New York Federal Reserve President John Williams endorsed a near-term interest rate cut by the Fed at the first sign of economic distress.

A mixed batch of corporate earnings results kept gains in check. The Dow inched up marginally, while the tech-heavy Nasdaq Composite rose 0.3 percent and the S&P 500 added 0.4 percent.

European markets ended Thursday's session lower as earnings woes overshadowed hopes of looser monetary policy from the European Central Bank.

The pan European Stoxx 600 shed 0.2 percent. The German DAX dropped 0.9 percent, France's CAC 40 index eased 0.4 percent and the U.K.'s FTSE 100 declined 0.6 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT