Sensex, Nifty may open lower on Asian cues, consumer stocks eyed on GST move

0

Indian share markets may open lower on geo-political risks in Asia and as chances of interest rate hike by the US Federal Reserve looms.

A slower-than-expected growth in China and geopolitical tensions after North Korea fired four ballistic missiles, three of which landed at Japan’s exclusive economic zones, may keep Asian investors on edges. On Sunday, China cut its GDP growth target to a 25-year low of 6.5% for 2017 from 6.5-7% in 2016.

In India, the approval of two crucial draft legislation on Saturday for rolling out Goods and Services Tax from July, may keep shares of consumer goods, auto and building materials in focus.

On Friday, the Sensex closed down marginally at 28,832.45 while Nifty was also flat at 8,897.55 on global cues.

US benchmarks Dow Jones Industrial Average and Nasdaq also closed flat last week.

On Monday, Asian shares slid as investors were nervous over prospects of Fed rate hike this month. The MSCI’s broadest dollar-denominated index of Asia-Pacific shares outside Japan traded flat in early trade.

Nikkei was down 0.4% while Kospi fell 0.15%, Strait Times 0.45% and Shanghai 0.3% in early trade.

The dollar slipped 0.2% to 113.83 yen, giving up some gains of last week on Fed rate hike news.

On Friday, Fed chair Janet Yellen said the central bank is set to raise rates at the next meeting on March 14-15 if jobs and inflation remains firm.

Last week, global markets were rallying after US President Donald Trump outlined to the Congress the need to slash tax rates and plans of a $1 trillion investment in infrastructure.