Plus   Neg

Sensex, Nifty Seen Lower As Trade Tensions Rise

Indian shares may open lower on Wednesday as investors await the RBI monetary policy outcome tomorrow. Market participants believe the central bank may cut interest rates for the sixth straight time to boost growth.

Global rating agency S&P has reaffirmed sovereign rating of India with stable outlook, saying the Indian economy will continue to outperform its peers and that growth will remain strong over the next two years.

The government has taken various steps, including reduction in the corporate tax and there is scope for further reforms to make India a more attractive investment destination, finance minister Nirmala Sitharaman said at the India-Sweden Business Summit.

Benchmark indexes Sensex and the Nifty ended a choppy session modestly lower on Tuesday while the rupee closed on a steady note.

Asian markets suffered sharp losses this morning after U.S. Commerce Secretary Wilbur Ross said that U.S. import tariffs would continue unless there was an interim trade deal.

He rejected any deadlines to get a deal done and launched a fresh attack on telecoms giant Huawei, further dimming hopes for an end to a 17-month trade war. The next round of tariffs is set to take effect on December 15.

U.S. stocks ended lower for the third straight session overnight after President Donald Trump suggested he may want to delay a trade deal with China until after the 2020 presidential election.

Trump told reporters at a NATO summit in London there is no deadline to reach a trade deal, adding, "In some ways, I think it's better to wait until after the election."

Trump added a potential trade deal is only dependent on whether he wants to sign it, because the U.S. is "doing very well" and China is "having by far the worst year that they have had in 57 years."

The Dow Jones Industrial Average shed 1 percent, the tech-heavy Nasdaq Composite dropped 0.6 percent and the S&P 500 gave up 0.7 percent.

European markets ended mostly lower on Tuesday amid fresh concerns about global trade.

The pan-European Stoxx Europe 600 index declined 0.6 percent. France's CAC 40 index lost 1 percent and the U.K.'s FTSE 100 slumped 1.8 percent while the German DAX edged up 0.2 percent.

For comments and feedback contact: editorial@rttnews.com

Follow RTT