Indian Shares Seen Lower On Weak Global Cues
(RTTNews) - Indian shares may open lower on Tuesday, mirroring weak global cues on doubts over a pre-election U.S. stimulus deal.
The downside, however, may remain capped by earnings optimism after ACC and Britannia Industries posted encouraging earnings results for the September quarter.
Cement manufacturer ACC posted 20 percent year-on-year growth in consolidated net profit for the September quarter, while Britannia Industries' Q2 profit jumped 23 percent.
Benchmark indexes Sensex and the Nifty jumped around 1 percent on Monday while the rupee ended flat at 73.36 against the dollar.
Asian markets are moving lower this morning after Europe reported record daily coronavirus infections and reports suggested that U.S. Democrat nominee Joe Biden's once-encouraging lead over incumbent Republican Donald Trump has narrowed, raising the risk of a disputed election outcome.
The dollar rose against the yen, gold inched lower and oil extended losses for the fourth day ahead of the deadline to reach an agreement on a new U.S. coronavirus stimulus.
U.S. stocks hit their lowest levels in almost two weeks overnight, as a deal on more stimulus remained elusive and Fed officials warned that lack of help from Congress will threaten recovery.
The Dow Jones Industrial Average dropped 1.4 percent, the tech-heavy Nasdaq Composite shed 1.7 percent and the S&P 500 gave up 1.6 percent.
European markets fell on Monday as Chinese GDP data missed forecasts and a new raft of new coronavirus restrictions came into force in several countries.
The pan European Stoxx 600 eased 0.2 percent. The German DAX gave up 0.4 percent, France's CAC 40 index slipped 0.1 percent and the U.K.'s FTSE 100 declined 0.6 percent.
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