By RTT News, September 30, 2013, 11:07:00 PM EDT
(RTTNews.com) - Indian shares are poised to open higher on Tuesday after data released by the Reserve Bank of India showed India's current account deficit widened to $21.8 billion or 4.9 percent of GDP in the first quarter of the current fiscal year on the back of rising gold imports and shrinking exports. The data beat forecasts for a deficit of $23-$25 billion.
Separately, official data showed that the core sector grew 3.7 percent in August, expanding for a second month and up from the 3.1 percent growth in the previous month, brightening prospects for industrial production. On the flip side, India's fiscal deficit in the first five months of the financial year crossed 74.6 percent of the annual projection, compared with 65.7 percent a year ago.
Indian shares fell sharply on Monday, tracking weak Asian and European cues on growing concerns a prolonged U.S. budget impasse will hurt economic growth in the world's largest economy. The 30-share Sensex fell 347 points or 1.76 percent to 19,380, while the broader Nifty index closed at 5,735, down 98 points or 1.68 percent from its previous close.
<b>Asian Markets </b>
The Asian markets rebounded from the previous session's losses, although investors remain cautious on concerns about a possible U.S. government shutdown. While urging Republicans in Congress to reach a last-minute accord, President Barack Obama stressed that a government shutdown will have a very real economic impact on real people, right away.
The markets in China and Hong Kong are closed for public holidays. China's manufacturing growth rose less than economists forecast in September, official data showed, adding to evidence the economy is recovering at a more modest pace than in previous months.
Japan's Nikkei index is rising 1.2 percent ahead of an announcement by Japan's Prime Minister Shinzo Abe regarding a planned sales tax increase seen as crucial to cut the nation's massive debt. Australia's All Ordinaries index is moving up 0.2 percent ahead of the Reserve Bank of Australia's rate decision. South Korea's Kospi is gaining half a percent on renewed buying by overseas investors.
<b>U.S. And European Markets </b>
U.S. stocks lost ground overnight, as worries about a looming government shutdown overshadowed data showing improved manufacturing activity in the Chicago area. The Senate rejected a budget bill, cleared by the Republican-dominated House of Representatives, pushing the government dangerously close to a shutdown. The Dow dropped 0.8 percent, the tech-heavy Nasdaq slid 0.3 percent and the S&P 500 declined 0.6 percent.
The European markets finished solidly in negative territory, with political turmoil in Italy, disappointing German retail sales data and the budgetary impasse in Washington weighing on markets. The German DAX and the U.K.'s FTSE 100 dropped about 0.8 percent each, while France's CAC 40 lost a percent.
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