Indian shares are likely to open on a flat note Friday, as investors react to weak global cues, macroeconomic data and Moody's less gloomy outlook on GDP.
Global cues remain tepid as surging Covid-19 infections in the United States and Europe eclipsed promising vaccine news.
India's inflation accelerated in October and industrial production grew in September, both defying expectations, separate reports showed on Thursday.
The consumer price index rose 7.61 percent year-on-year after a 7.27 percent increase in September while economists had forecast 7.30 percent inflation.
Industrial production increased 0.2 percent year-on-year in September, while economists were looking for a 2.0 percent decline.
Earlier on Thursday, the finance minister announced a third stimulus for the Indian economy that is severely hurt by the coronavirus pandemic.
Meanwhile, rating agency Moody's Investors Service has raised India's GDP forecast for the calendar year 2020 upwards to -8.9 percent contraction from -9.6 percent contraction projected earlier.
Similarly, the GDP forecast for 2021 has been raised to 8.6 percent from 8.1 percent predicted earlier.
Benchmark indexes Sensex and the Nifty dropped around half a percent on Thursday to snap an eight-day winning streak, while the rupee slipped 28 paise to close at 74.64 against the greenback, extending its losing streak for the fourth straight session.
Asian markets are moving lower this morning as many states and cities in the United States reimposed public health restrictions to tackle a surge in Covid-19 cases.
Gold held steady and the U.S. dollar headed for its best week against the yen since March, while oil prices fell over 1 percent after the EIA reported an unexpected weekly climb in U.S. crude supplies.
U.S. stocks fell overnight as new curbs on activity in New York and rising Covid-19 hospitalizations stoked fresh worries over economic growth.
Fed Chair Jerome Powell's cautious comments during a virtual event also added to the downbeat sentiment. With the virus spreading, the next few months could be challenging despite recent upbeat news about a potential vaccine, Powell said.
The Dow Jones Industrial Average dropped 1.1 percent, the S&P 500 gave up 1 percent and the tech-heavy Nasdaq Composite eased 0.7 percent.
European markets fell on profit taking Thursday after strong gains earlier in the week on vaccine hopes.
The pan European Stoxx 600 shed 0.9 percent. The German DAX lost 1.2 percent, France's CAC 40 index tumbled 1.5 percent and the U.K.'s FTSE 100 declined 0.7 percent.
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