Indian shares likely to open lower on extended global weakness

BENGALURU (Reuters) – Indian shares are expected to open lower on Thursday, tracking global markets, as worries over higher interest rates and surging crude prices weighed.

India’s GIFT Nifty was mostly unchanged at 19,836.50 points at 7:57 a.m. IST on the NSE International Exchange.

The Nifty 50 closed up 0.26% at 19,716.45 points on Wednesday, while the S&P BSE Sensex rose 0.3% to end at 66,118.69 points.

Surging U.S. Treasury yields, along with the dollar, on fears that interest rates will remain higher for longer has weighed on the global equity markets for the past week since the Federal Reserve’s hawkish tone.

Domestic investors will also focus on surging crude prices, which rose 3% overnight. Higher oil prices will negatively impact India, the world’s third-largest importer, which is also reeling under lower-than-expected monsoon rains.

Meanwhile, equity outflows worried sentiments as foreign institutional investors (FIIs) snapped a six-month buying streak in September.

FIIs sold 3.54 billion rupees ($42.53 million) of shares, while domestic investors bought 3.86 billion rupees shares on Wednesday, provisional exchange data showed.


** Coal India said representatives of trade unions shall go on strike in establishments of co or unit from Oct 12 to Oct 14

** Info Edge (India) unit agrees to invest about $500,000 in Skyserve inc

** Dixon Technologies (India) unit enters into an agreement with Xiaomi for making smart phones

($1 = 83.2390 Indian rupees)

(Reporting by Sethuraman NR in Bengaluru; Editing by Janane Venkatraman)