Sensex, Nifty Seen Lower At Open As Global Sell-off Deepens

(RTTNews) - Indian shares may follow global peers lower on Friday, even as a weakening dollar, plunging oil prices and expectations for accelerated Federal Reserve interest-rate cuts may help cap overall losses to some extent.

Additionally, investors expect RBI's MPC to reduce the repo rate by 25 bps next week, based on the expectation of a moderation in the CPI inflation to 4.2 percent on average in FY26.

Benchmark indexes Sensex and Nifty dropped around 0.4 percent each on Thursday, with IT and auto stocks leading losses on tariff jitters.

The rupee closed up 7 paise at 85.43 against the greenback in the wake of dollar weakening in international markets.

Foreign institutional investors net sold shares worth Rs 2,806 crore on Thursday, while domestic institutional investors bought shares to the extent of Rs 221 crore, as per provisional data.

Asian markets were broadly lower this morning amid concerns about a trade war that could fuel inflation and damage the global economy.

China, which is facing an aggregate 54 percent tariff vowed retaliation. Canada and the European Union are preparing countermeasures.

French President Emmanuel Macron has called for European firms to suspend planned investment in the U.S. Germany's economy minister has called for strong European response to Trump's tariffs.

The World Trade Organization said it was "deeply concerned", estimating global merchandize trade volumes could shrink by 1 percent this year.

The dollar extended its drop and yields on the 10-year U.S. Treasury hovered around the 4 percent mark as investors await a key U.S. jobs report and a speech by Fed Chair Jerome Powell for additional clues on the outlook for the world's largest economy.

Oil extended losses after tumbling over 6 percent in the previous session following an OPEC+ decision to increase output faster than previously announced.

Gold held steady but was set for a fifth weekly gain. With the chances of a recession in the world's biggest economy rising significantly, money markets now price in a 50 percent chance of the Federal Reserve delivering four quarter-point rate reductions this year.

U.S. stocks nosedived overnight, the dollar experienced its largest single-day decline on record and yields on Treasuries dropped significantly as the announcement of sweeping new tariffs stoked fears of a trade war and the U.S. entering a recession.

A measure of U.S. service sector growth slowed by more than anticipated in March, adding to investor anxiety.

The tech-heavy Nasdaq Composite plummeted 6 percent and the S&P 500 plunged 4.8 percent to reach their lowest levels since last August, while the Dow slumped 4 percent to a nearly seven-month closing low.

European stocks notched their biggest daily loss in eight months on Thursday as Trump announced significantly harsher-than-expected tariffs.

The pan European STOXX 600 tumbled 2.6 percent. The German DAX lost 3 percent, France's CAC 40 declined 3.3 percent and the U.K.'s FTSE 100 gave up 1.6 percent.