Sensex, Nifty may open lower as Fed rate hike looms
Indian share markets may open lower on Friday tracking global cues and firm dollar as investors are nervous over a possible interest rate hike by the US Federal Reserve in March policy review.business Updated: Mar 03, 2017 07:48 IST
Indian share markets may open lower on Friday tracking global cues and firm dollar as investors are nervous over a possible interest rate hike by the US Federal Reserve in March policy review.
On Thursday, Sensex breached the 29,000 and while Nifty came close to 9,000-level in intra-day trade. However, the indices slipped into red as investors booked profits and as European shares tumbled after UK Prime Minister Theresa May vowed to trigger Article 50 on March 15 for exiting European Union despite an overwhelming defeat at the House of Lords.
Sensex closed down 144.7 points or 0.5% at 28,839.79 while Nifty was down 0.5% at 8,899.75.
On Friday, the dollar gained on expectation of Fed rate hike, which halted the winning streak at the Wall Street.
Asian markets traded lower with the MSCI’s broadest index of Asia-Pacific shares outside Japan falling 0.4%.
Japan’s Nikkei was almost flat as a weaker yen helped in supporting stocks but Kospi and Strait Times indices were down.
Hawkish comments from Fed officials boosted the probability of rate hike this month to 74% from just 30% at the start of the week. Investors are waiting to hear Fed Chair Janet Yellen and Vice Chair Stanley Fischer later on Friday to get fresh cues.
Oil prices fell as Russian crude production remained unchanged in February, raising doubts over the deal to cut output as per the OPEC deal.