Sensex, Nifty Seen Tad Lower As US Vote Count Continues

(RTTNews) - Indian shares may open a tad lower on Thursday amid uncertainty surrounding U.S. midterm election results and ahead of U.S. consumer price inflation data due later in the day, which might suggest the path for interest rates ahead.

U.S. Republicans inched closer to a narrow House majority while control of the Senate hinged on a few tight races that could take days, if not weeks, to determine.

Meanwhile, a confluence of favorable domestic factors will make India the world's third-largest economy by 2027, Morgan Stanley's chief Asia economist Chetan Ahya wrote in Financial Times.

Benchmark indexes Sensex and Nifty fell around 0.3 percent each on Wednesday, while the rupee notched up firm gains to settle at 81.43 against the dollar, closing at its strongest level since September 30 amid resumption of overseas investment in stocks.

Asian markets were trading lower this morning as U.S. midterm election results continue to roll in.

The dollar regained its footing and gold prices held steady, while oil was little changed, after having fallen around 3 percent on Wednesday on bearish inventory data and China demand concerns.

U.S. stocks tumbled overnight after rising for three straight sessions. There was uncertainty around the outcome of a tightly contested election as the GOP's midterm 'red wave' failed to materialize.

The Dow lost 2 percent, the tech-heavy Nasdaq Composite plunged 2.5 percent and the S&P 500 plummeted 2.1 percent.

European stocks slipped for the first time in four days Wednesday amid U.S. political uncertainty and concerns over a resurgence of coronavirus outbreaks in China.

The pan European STOXX 600 eased 0.3 percent. The German DAX and France's CAC 40 index both dipped around 0.2 percent while the U.K.'s FTSE 100 slid 0.1 percent.