Indian Shares Seen Flat To Lower At Open

(RTTNews) - Indian shares may drift lower at open on Thursday, although information technology stocks may extend recent gains after a gauge of semiconductor stocks extended losses into a sixth day on concerns about the sustainability of the artificial-intelligence trade.

A cautious undertone may prevail due to persistent foreign fund outflows, elevated oil prices and increased expectations for the U.S. Federal Reserve to act later this year.

Inflation worries may keep investors on edge after official data showed India's wholesale price inflation accelerated more-than-expected in September.

The wholesale price index registered an annual growth of 11.39 percent in September compared to 9.92 percent in August. The expected increase was 10.18 percent.

Benchmark indexes Sensex and Nifty ended down about 0.3 percent and 0.4 percent, respectively on Wednesday, after heaving logged strong gains in the previous session, led by information technology stocks.

The rupee rose by 19 paise to close at 95.17 against the U.S. dollar, extending gains for the fourth consecutive session and hitting a one-month high, supported by recent measures announced by RBI to curb speculative bets.

The central bank would consider further measures, if needed, to ensure orderly movement in the foreign exchange market, RBI Governor Sanjay Malhotra said in an interview.

Foreign institutional investors (FIIs) net sold shares worth Rs. 1,857.44 crore on Wednesday, while domestic institutional investors (DIIs) net bought shares to the extent of Rs. 2,670.44 crore, according to provisional exchange data.

Asian markets were broadly lower this morning, with South Korea's Kospi plunging nearly 8 percent and Japan's Nikkei tumbling more than 4 percent as tech stocks nosedived on concerns over the prospect of higher interest rates.

The U.S. dollar hovered near an 18-month high ahead of the release of U.S. producer price inflation and retail sales data as well as speeches from Fed officials, including Chair Kevin Warsh later in the day.

Gold rose about 1 percent to $4,146 an ounce after touching a one-week low in the previous session.

Brent crude futures fell nearly 2 percent toward $104 a barrel due to profit taking following a recent rally as reports suggested the Trump administration is considering easing sanctions on so-called shadow fleet vessels in order to reduce record-high global freight rates.

However, supply concerns remain elevated after two commercial vessels were struck by unidentified projectiles while passing through the Strait of Hormuz on October 13 and 14, as reported by the Maritime and Port Authority of Singapore.

Yemen's Houthis vowed to press on with attacks on airports and oil facilities in Saudi Arabia after hitting the headquarters of the Saudi state-owned oil company Aramco a day earlier.

Elsewhere, Russia accused Ukraine of carrying out drone strikes on two oil refineries, including the 400,000-barrel-per-day Ryazan facility.

"We see no indication that the Ukrainian side is moving towards an energy ceasefire", Russian Deputy Prime Minister Alexander Novak said.

U.S. stocks dropped to their worst day since July overnight, feeling pressure from rising yields in the bond market as a hotter-than-expected inflation reading bolstered the case for another Federal Reserve rate increase this year.

The 10-year Treasury briefly jumped above 5.32 percent before giving back much of the gain as data showed the annual rate of consumer price growth jumped to 3.7 percent in September from 3.4 percent in August, matching expectations.

The annual rate of core consumer price growth accelerated to 2.6 from 2.4 percent in August, coming in slightly above economist estimates for 2.5 percent growth.

Traders now see a nearly 35 percent chance the Fed will raise borrowing costs at its next meeting later this month, up from the 22 percent probability seen a day earlier, according to the CME FedWatch tool.

The S&P 500 fell 1.1 percent for a fifth loss in the six days after setting a new record high. The tech-heavy Nasdaq Composite tumbled 1.9 percent on AI funding concerns, with Broadcom CEO comparing parts of the AI trade to a casino. The narrower Dow slipped 0.1 percent.

European stocks closed higher on Wednesday as upbeat earnings from ASML boosted technology stocks. The pan-European STOXX 600 rose 0.4 percent.

The German DAX edged up 0.2 percent, France's CAC 40 added 0.6 percent and the U.K.'s FTSE 100 advanced 0.7 percent.