Sensex, Nifty Set For Muted Start

(RTTNews) - Indian shares may open on a sluggish note on Friday following six consecutive sessions of gains on optimism about S&P's rating upgrade for India, improving Sino-India relations and the Centre's plan to rationalize Goods and Services Tax (GST).

A cautious undertone may prevail after a Trump administration official called India the 'Maharaja' of tariffs and ramped up his criticism over the trade ahead of an expected tariff increase on August 27.

White House Trade Adviser Peter Navarro accused India of playing a "role in the bloodshed," in Ukraine by importing Russian oil, calling it a "laundromat for the Kremlin."

Benchmark indexes Sensex and Nifty edged up slightly to extend gains for a sixth day running on Thursday, the longest winning streak in over two months, as a panel of state ministers accepted the Centre's plan to reduce the four-rate system to two main slabs of 5 percent and 18 percent.

The rupee reversed early gains to settle 18 paise lower at 87.25 against the U.S. dollar, pressured by a strong American currency and a recovery in crude oil prices.

Foreign investors bought shares worth Rs. 1,247 crore on a net basis on Thursday, while domestic institutional investors sustained their support with net purchases of Rs 2,546 crore, as per provisional exchange data.

Asian markets were mixed this morning as traders pared back wagers on imminent Federal Reserve interest-rate cuts and braced for Fed Chair Jerome Powell's speech at the Jackson Hole symposium.

Treasuries were little changed after falling across the curve in the New York session. Japan's 10-year yields hit a 17-year peak after July core inflation came in at 3.1 percent, against an estimate for 3 percent.

The dollar was steady as the U.S. Justice Department called for Federal Reserve governor Lisa Cook to be removed from her post in the latest escalation of the Trump administration's assault on the central bank.

President Trump's housing-finance chief, Bill Pulte, confirmed that he filed a criminal referral against her for alleged mortgage fraud made in 2021. Gold ticked lower while oil steadied after two days of gains.

Overnight, U.S. stocks ended mostly lower as Walmart reported weaker than expected second quarter earnings and new data showed the number of Americans filing new applications for jobless benefits rose by the most in about three months last week, adding to signs of a slowing labor market.

On the contrary, U.S. business activity picked up pace in August and existing home sales posted a surprising rebound in July.

The S&P 500 dropped 0.4 percent to end lower for the fifth consecutive session while the tech-heavy Nasdaq Composite and the Dow both fell around 0.3 percent.

European stocks ended mixed on Thursday as the U.S. and European Union officials announced a written framework for their long-discussed trade deal.

The pan European STOXX 600 ended flat after three days of gains. The German DAX edged up marginally and the U.K.'s FTSE 100 rose 0.2 percent while France's CAC 40 dipped 0.4 percent.