(RTTNews) - Indian shares look set to open sharply lower on Thursday, with weak global cues, concerns over rising novel coronavirus cases and growth worries likely to weigh on sentiment. The impending expiry of derivative contracts may add to market volatility. The Indian economy will likely contract by 5.9 percent in 2020 amid disruptions caused by the Covid-19 pandemic, the UN has said in a report.
"The baseline scenario is a sharp recession in 2020 as strict lockdown measures to stem the virus spread brought many productive activities to a halt across the country," it said.
Benchmark indexes Sensex and the Nifty dropped around 0.2 percent on Wednesday to extend declines for the fifth day running, while the rupee ended flat at 73.57 per dollar.
Asian markets fell this morning, with South Korea, Hong Kong and Australia seeing the biggest declines after Fed Chairman Jerome Powell reiterated there's a long way to go for the economic rebound.
Gold hovered near two-month low on a stronger dollar while oil edged lower on concerns the U.S. economic recovery is slowing.
Overnight, U.S. stocks tumbled to close at their lowest levels in well over a month after data showed business activity cooled in September.
The stimulus stalemate in Congress and worries that coronavirus infections could rise also heightened concerns about the economy, with President Donald Trump indicating the U.S. would not follow the U.K.'s lead and implement a second round of lockdowns.
The Dow lost 1.9 percent, the tech-heavy Nasdaq Composite plunged 3 percent and the S&P 500 slumped 2.4 percent.
European markets rose on Wednesday as investors reacted to key data releases from the euro zone and Fed Chair Jerome Powell's measured comments highlighting the need for more fiscal stimulus.
The pan European Stoxx 600 gained 0.6 percent. The German DAX rose 0.4 percent, France's CAC 40 index gained 0.6 percent and the U.K.'s FTSE 100 rallied 1.2 percent.
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