The domestic markets are likely to open in the red, following weak global cues amid concerns of economic recovery worldwide. Trends on SGX Nifty indicate a negative opening for the index in India, with 81 points loss. At 7:30 am, the Nifty futures were trading at 11,522, weaker by 81 points or 0.8 per cent on the Singapore Stock Exchange.
Asian shares were set to drift lower on Thursday as concerns about the strength of the recovery from the COVID-19 pandemic remained, even after the U.S. Federal Reserve pledged to hold interest rates near zero until at least 2023.
Australian S&P/ASX 200 futures lost 0.22 per cent in early trading. Japan’s Nikkei 225 futures were flat, while Hong Kong’s Hang Seng index futures lost 0.15 per cent.
Overnight, the S&P 500 ended lower, reversing gains late in the day as losses in technology shares outweighed a Federal Reserve statement that stoked optimism it would keep U.S. interest rates near zero for a prolonged period.
The Dow Jones rose 0.13 per cent, the S&P 500 lost 0.46 per cent and Nasdaq Composite dropped 1.25 per cent.
Meanwhile, oil prices jumped more than 4 per cent on Wednesday, following a drawdown in U.S. crude and gasoline inventories and as Hurricane Sally forced a swath of U.S. offshore production to shut.
Brent crude settled at $42.22 a barrel, up $1.69, or 4.2 per cent. U.S. crude finished $1.88, or 4.9 per cent.at $40.16 a barrel.