(RTTNews) - Indian shares are likely to open lower on Wednesday after posting strong gains in the previous session on hopes of higher foreign inflows.
Finance Minister Nirmala Sitharaman on Tuesday said economic activity had picked up in the country after the easing of pandemic restrictions but GDP growth might be in negative zone or near zero in the current fiscal.
Meanwhile, the RBI said in a report that the Covid-19 pandemic may erode fiscal consolidation gains achieved by the State governments in the past three years.
Voting for the first phase of the Bihar Elections 2020 began this morning with Covid-19 precautions, while the second and third phases of elections will be held on November 3 and 7, respectively. The results will be declared on November 10.
On the earnings front, Tata Motor's Q2 loss widened from last year, but still beat analyst estimates. The company expects sales and production to improve in the second half of the current fiscal.
Benchmark indexes Sensex and the Nifty jumped around 1 percent Tuesday and the rupee rose by 13 paise to 73.71 against the U.S. dollar after MSCI Inc. announced that it will make changes to its global indexes.
Asian markets remain mostly lower this morning as global Covid-19 cases continued to surge and U.S. President Donald Trump admitted that talks have collapsed for a coronavirus stimulus package before Election Day.
Meanwhile, a national poll from Rasmussen out Tuesday found Joe Biden leading Trump by just 2 points nationally.
Gold edged lower on a firmer dollar while oil prices fell on fears of oversupply after industry data revealed a bigger-than-expected increase in U.S. crude stockpiles.
U.S. stocks ended mixed overnight as investors reacted to a resurgence of coronavirus hospitalizations and continued uncertainty around the new U.S. stimulus package.
The day's economic reports proved to be a mixed bag, with durable goods orders increasing solidly in September while a measure of consumer confidence unexpectedly slipped in October.
The Dow Jones Industrial Average dropped 0.8 percent and the S&P 500 eased 0.3 percent, while the tech-heavy Nasdaq Composite rose 0.6 percent.
European markets fell on Tuesday to extend losses from the previous session as coronavirus-related worries coupled with anxiety about the outcome of the U.S. presidential election overshadowed a slew of upbeat earnings results.
The pan European Stoxx 600 fell 1 percent. The German DAX shed 0.9 percent, France's CAC 40 index lost 1.8 percent and the U.K.'s FTSE 100 declined 1.1 percent.
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