Indian benchmark indices opened flat after a muted handover from Wall Street and negative cues from the Asian markets, even as investors wait for the macroeconomic data for the fourth fiscal quarter of the fiscal year 2017 that will be released after market hours today.
BSE Sensex opened 63.11 points higher at 31,222.51 points, while NSE Nifty, the broader gauge, opened 12 points higher at 9,636.55 points. At 9:25 am, Sensex was trading 36.94 points or 0.12% lower at 31,122.46 points, while Nifty was trading 10.40 points or 0.11% lower at 9,614.15 points.
The government will today post market hours, announce the GDP figures for the quarter ended 31 Mar. Gross domestic product (GDP) had grown marginally lower, at 7 percent, in the third quarter of FY17, down from 7.4 percent in the second quarter. India’s economy is expected to grow at 7.1 percent in the fourth quarter of FY17, as remonetisation has gained steam, ICRA said in a note earlier this week.
However, Motilal Oswal Securities predicted a lower growth rate for the GDP numbers. “Irrespective of the new IIP (index of industrial production) series (2011-12 base), which is a key ingredient in quarterly GDP estimates and shows much higher growth than the old IIP series (2004-05 base), we continue believing that real GVA/GDP growth (2011-12 base) will likely be 6 percent YoY in 4QFY17, much lower than in previous quarters,” the brokerage house said in a research note.
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Asian markets across Japan, Korea and Australia were trading negative in early morning trade. In overnight trade, the Dow Jones Industrial Average fell 50.47 points, or 0.24 percent, to close at 21,029.81 points; S&P500 index declined 2.89 points, or 0.12 percent, to 2,412.93 points while the NASDAQ Composite index slipped 7.01 points, or 0.11 percent, to 6,203.19 points.
Indian Rupee rebounded strongly against the US dollar after correction in yesterday’s session. The domestic unit opened 11 paise higher to 64.55 compared to Tuesday’s close of 64.66. The domestic currency had slipped 16 paise to close at 64.66 a dollar on Tuesday, on the back of a sustained demand for the US currency from banks and importers, after opening significantly lower at 64.64 in comparison to Monday’s close of 64.50.
The US dollar fell to two-week lows against the safe-haven Japanese Yen and Swiss Franc on Tuesday, as investors turned cautious amid political worries in Europe as well as weaker stock and commodity markets after a long US holiday weekend, said a report by Reuters.
The dollar index was down 0.1 percent at 97.30, with the euro up 0.2 percent at $1.1184, while against the yen, it dropped 0.5 percent to 110.77 yen and was down 0.4 percent against the Swiss Franc at 0.9745 Franc.
Oil prices fell about 1 percent on Tuesday, as the extended production cuts by leading crude exporting countries did not seem to be enough to drain a global glut that has depressed oil prices for almost three years. Brent crude fell 45 cents, or 0.9 percent, to $51.84 a barrel while US light crude slipped 14 cents, or 0.3 percent, to $49.66.