Nov 03, 2020
The Indian Shares is Seen Tad Lower in the Open
Indian shares are more likely to open lower after posting strong gains in the previous session in hopes of higher foreign inflows.
The Finance Minister Nirmala Sitharaman said that economic activity had picked up in the country after the easing of pandemic restrictions but GDP growth might be in the negative zone or near zero in the current fiscal. While the RBI stated in a report that the Covid-19 pandemic may erode fiscal consolidation gains achieved by the State governments in the past three years.
As voting of the first phase of the Bihar Elections 2020 began this morning with Covid-19 precautions, while the second and third phases of elections will be held on November 3 and 7, respectively. The results will be declared on November 10.
On the earnings front, Tata Motor’s Q2 loss widened from last year but continues to beat analyst estimates. The company expects sales and production in improving the second half of the current fiscal.
Moreover, benchmark indexes Sensex and the Nifty jumped around 1 percent and the rupee rose by 12 praise to 73.71 against the U.S. dollar after MSCI Inc. announced making changes in its global indexes.
Still, Asian markets remained mostly lower this morning as global Covid-19 cases continue in surging and U.S. President Donald Trump admitted that talks have collapsed for a coronavirus stimulus package before Election Day.
The gold-edged lower on a firmer dollar while oil prices fell on fears of oversupply after industry data has revealed a bigger-than-expected increase in U.S. crude stockpiles. Meanwhile, a national poll from the Rasmussen out Tuesday finds out that Joe Biden leads Trump by just 2 points nationally.
However, the U.S. stocks ended mixed overnight as investors reacted to a resurgence of coronavirus hospitalizations and continued being uncertain around the new U.S. stimulus package.
The day’s economic reports proved to be a mixed bag, with durable goods orders increasing solidity in September while measuring consumer confidence unexpectedly slipped in October.
Furthermore, Dow Jones Industrial Average dropped 0.8 percent and the S&P 500 eased 0.3 percent, while the tech-heavy Nasdaq Composite rose 0.6 percent.
European markets fell as it extended losses from the previous session as coronavirus-related worries coupled with anxiety about the outcome of the U.S. presidential election overshadowed a slew of upbeat earnings results.
Overall, the pan European Stoxx 600 fell 1 percent. While the German DAX shed 0.9 percent, France’s CAC 40 index lost 1.8 percent and the U.K.’s FTSE 100 declined 1.1 percent.