Indian shares are seen opening a tad higher on Thursday, tracking gains in global markets after U.S. President Joe Biden announced a multi-trillion-dollar infrastructure investment plan.
Underlying sentiment, however, may remain cautious after data showed the output of eight core sectors declined by 4.6 percent in February, marking the steepest contraction in the last six months and raising concerns that the economic recovery might be delayed.
India’s current account swung to a deficit for the first time in the current fiscal, while the Centre’s fiscal deficit for April-February 2021 stood at 76 percent of the 2020-21 revised estimates of Rs 18.49 lakh crore, separate reports revealed.
Meanwhile, the government has cut the rates of small savings schemes by 50-100 basis points for the first quarter of the financial year 2021-22 in line with the falling fixed deposit rates of banks.
Benchmark indexes Sensex and the Nifty fell over 1 percent on Wednesday while the rupee closed higher by 26 paise at 73.12 against the dollar.
Asian markets remain broadly higher this morning and the dollar held near multi-month highs amid bets that fiscal stimulus and aggressive vaccinations will help the United States lead a global pandemic recovery.
U.S. stocks rose broadly overnight as a report from payroll processor ADP showed strong private sector job growth in March and investors looked forward to details of President Joe Biden’s massive infrastructure and economic recovery plan.
The tech-heavy Nasdaq Composite jumped 1.5 percent and the S&P 500 added 0.4 percent while the Dow slid 0.3 percent.
European stocks fell on Wednesday as worries about climbing bond yields and rising coronavirus infections overshadowed some fairly good economic data from the region.
The pan European Stoxx 600 eased 0.2 percent. The German DAX ended little changed with a negative bias, France’s CAC 40 index dipped 0.3 percent and the U.K.’s FTSE 100 lost 0.9 percent.
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