The Indan headline indices Sensex and Nifty are likely to open lower in view of global growth concerns and global trade tensions.The IMF on Tuesday lowered its global growth forecast to 3.3% this year. SGX NIfty was last seen trading at 11,714.50 points, 0.30% down from the previous close. The Indian indices ended in green on Tuesday after a volatile session. While the Sensex ended at 38,939 level, 238 points up, Nifty50 closed at 11,677 mark, 73 points points higher than the previous close. Let’s take a look at key things which will drive the market today.
Crude oil price: Crude oil fell from five-month highs on Tuesday after Russia indicated toward its retreat from its production-cutting deal with OPEC and International Monetary Fund cut its global economic growth forecasts. .President Vladimir Putin said Tuesday that Russia did not support an uncontrollable rise in oil prices and that the current price suited Moscow. The international benchmark Brent futures were at $70.83 per barrel at 0056 GMT, 0.3 percent higher than the previous close. US West Texas Intermediate or WTI crude oil futures were at $64.26 per barrel, marginally up by 0.3 percent, from their previous close.
IMF global growth forecast: The International Monetary Fund lowered its global growth outlook to the lowest since the financial crisis, amid trade tensions, political instability and rising debt levels. The IMF cut its growth forecast for this year to 3.3 percent this year from 3.5 percent it had forecast for 2019 in January.This is the third time when the IMF has downgraded its outlook in six months.
US-European Union conflict: US President Donald Trump on Tuesday threatened to impose US tariffs on European Union products. In a tweet, Trump said “the World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of EU products! The EU has taken advantage of the U.S. on trade for many years. It will soon stop!.”
IT quarterly results: The investors will keenly watch the quarterly results of major IT companies. IT major Infosys and TCS are likely to announce their results on the same day on April 12 this week. The IT sector is expected to post good results for Jan-Mar quarter.