Indian Shares Set For Soft Start
(RTTNews) - Indian shares are seen opening slightly lower on Thursday after Fitch Ratings hinted that higher government expenditure in the Budget to support near-term economic recovery may be viewed negatively from sovereign rating perspective.
"The debt/GDP trajectory is core to our sovereign rating assessment, meaning higher deficits and a slower consolidation path will make India's medium-term growth outlook take on a more critical role in our analysis," the rating agency said.
The Finance Ministry said in a report that the structural reforms and the policy push under the AatmaNirbhar Bharat Mission along with the slew of measures announced in the Union Budget 2021-22 towards achieving broad-based inclusive growth will strengthen the fundamentals of the economy and bring it back on to a strong and sustainable growth path in the year ahead.
Benchmark indexes Sensex and the Nifty ended a choppy session marginally lower on Wednesday while the rupee firmed up by 3 paise to settle at 72.84 against the dollar. Asian markets are trading mixed in thin holiday trade and the dollar held near two-week lows after the release of softer-than-expected U.S. inflation data, while oil prices eased after recent string of gains.
U.S. stocks hit record intraday highs on Wednesday before ending on a mixed note as investors cheered upbeat earnings news and President Joe Biden signaled support for keeping income thresholds for $1,400 stimulus checks.
Meanwhile, Federal Reserve Chair Jerome Powell appeared to express support for more stimulus, saying maintaining "patiently accommodative monetary policy" will be important to returning to a strong labor market. The Dow Jones Industrial Average edged up 0.2 percent, while the S&P 500 finished marginally lower and the tech-heavy Nasdaq Composite shed 0.3 percent.
European stocks drifted lower on Wednesday as caution crept in after recent strong gains. The pan European Stoxx 600 eased 0.2 percent. The German DAX dropped 0.6 percent, France's CAC 40 index gave up 0.4 percent and the U.K.'s FTSE 100 slid 0.1 percent.
