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Indian Market Seen Lower On U.S. Growth Concerns

(RTTNews) - The Indian market may drift lower at open on Friday, tracking weak global cues, as investors eagerly await a speech by the Federal Reserve Chairman later in the day for more clarity on what measures the Fed might announce at the central bank's annual conference to lift uncertainty about growth outlook. In the forex market, the dollar is trading near a one-week low against the euro ahead of revisions to U.S. economic growth numbers.

Asian stocks are trading weak and crude oil prices are declining for the first time in three days, while the yen strengthened on speculation the U.S. second-quarter GDP growth will be revised down to an annual rate of about 1.2-1.4%. Futures on the Dow index are down 15 points.

Closer home, the Union Cabinet on Thursday approved the draft of the Direct Tax Code (DTC) Bill that proposes to exempt incomes up to Rs. 2 lakh per annum and a lower tax rate for companies. The DTC Bill, which seeks to replace the nearly 50-year-old income tax law, is now expected to be introduced in the Rajya Sabha on Monday.

On Wall Street, stocks saw steep losses on Thursday, as traders braced for a downward revision of second quarter GDP on Friday, shrugging off the day's better than expected reading on jobless claims.

The Dow fell 0.7%, the Nasdaq lost 1.1% and the S&P 500 eased 0.8%. The Indian ADRs also closed mostly lower. Among the prominent decliners, MTNL and Wipro declined about 3% each, HDFC Bank edged down 1.3% and Sterlite ended down 0.93%.

However, crude oil prices edged higher for a second session on Thursday, supported by data revealing the first weekly drop in U.S. jobless claims this month and a weaker greenback. Light, sweet crude for October delivery ended up $0.84 at $73.36 a barrel on the New York Mercantile Exchange.

The Indian market ended a volatile session modestly higher on Thursday, helped by positive global cues. The 30-share BSE Sensex ended up 47 points or 0.26% at 18,226, with eighteen of its components ending higher, while the 50-share Nifty rose by 16 points or 0.28% to 5,478 on the lat day of August series F&O contracts.