Sensex, Nifty close down ahead of GDP data, Trump stimulus eyed
The Sensex and Nifty may open higher on Tuesday after US benchmark Dow Jones Industrial Average closed at a record high ahead of President Trump’s fiscal stimulus announcement.business Updated: Mar 05, 2017 06:40 IST
Indian shares ended down on Tuesday ahead of the GDP data for September-December when the demonetisation drive was initiated.
The Sensex opened flat but rose 0.2% to 28,876.54 while Nifty touched 8,900-level in early trade.
After see-saw trades, the Sensex closed down 70 points or 0.24% at 28,743.32 while Nifty was down 0.2% at 8,879.60 as investors were nervous ahead of the GDP data for October-December, which might show a sharp slowdown.
While a Reuters poll showed the Q3 GDP growth at 3-year low of 6.4%, several analysts say the number could come in at less than 6%.
The March derivative series also prompted investors to consolidate their position.
Leading the Sensex chart, Bharti Airtel was up 3.5% while Asian Paints was up 2.4% and Adani Ports 1.8%.
On Tuesday, Asian shares rose tracking firm Wall Street with the MSCI’s index of Asia-Pacific shares outside Japan gaining 0.1% in early trade. Japan’s Nikkei closed up 0.07% while Kospi was up 0.3% and Shanghai 0.4%. Hang Seng was down 0.8% and Strait Times fell 0.14%.
Europe traded mixed with FTSE-100 and CAC-40 in green while the DAX was in red tracking.
On Monday, US benchmark Dow Jones Industrial Average closed at a record high ahead of President Donald Trump’s fiscal stimulus and infrastructure spending announcements.
US Treasury Secretary Steven Mnuchin had also said on Sunday that Trump will use the event to preview some elements of his sweeping tax reform plans.
Trump has already announced hike in defence spending by $54 billion in his first budget proposal and slash the same amount from non-defence spending, including a large reduction in foreign aid, Reuters reported on Monday.
The dollar was up against the yen while euro edged down.
The dollar gained strength after Dallas Fed President Robert Kaplan said on Monday that the Fed might need to raise interest rates in the near future to avoid falling behind the curve on inflation.
Crude oil prices were flat on expectations of higher US crude production may offset the impact of OPEC’s production cut.
First Published: Feb 28, 2017 08:18 IST