European shares bounced back on Thursday after Beijing said it would hold trade talks with the U.S. in Washington later this month, spurring a recovery in investors’ risk appetite on hopes of a trade war thaw.
The key Indian equity indices pared major losses made during the morning session to trade flat on Thursday afternoon.
Shares in China’s Tencent Holdings lost more ground on Thursday after it logged its first quarterly profit decline in nearly 13 years and said it did not know when it would get Chinese approval to make money off its most popular game.
A wider trade deficit, along with outflow of foreign funds and global cues weakened the Indian rupee to a fresh record low during the morning session on Thursday.
Asian shares pulled away from one-year lows on Thursday, after Beijing said it will hold trade talks with Washington this month, although Turkey’s currency crisis and fears of an economic slowdown in China kept most markets in the red.
The benchmark BSE Sensex fell over 207 points and the NSE Nifty slipped below the 11,400-mark in early trade today on selling in metal, realty and banking stocks amid weak macroeconomic cues and sustained foreign fund outflows.
Indian markets are likely to open on a negative note on weak Asian cues. All eyes will be on the rupee which slipped past 70/$ on Tuesday, falling crude prices may cushion rupee fall.
The stronger dollar also put commodities under pressure across the board, with copper hitting a 12-month low and gold at an 18-month low. Oil futures also lost ground.
Investor grievances pending with Sebi dropped by 16 per cent to nearly 3,800 at the end of 2017-18 with the markets regulator working on their expeditious disposal, according to a Sebi report.