India equity benchmarks set for muted start after mixed US jobs data
- The Gift Nifty futures were trading at 25,925 points
India’s equity benchmarks are likely to open flat on Wednesday, tracking Asian markets, after mixed signals from US jobs data failed to move the needle on interest rate outlook.
Persistent foreign outflows from Indian equities and a depreciation in rupee also continue to weigh on sentiments amid a delay in potential trade deal between India and the United States.
The Gift Nifty futures were trading at 25,925 points as of 7:40 a.m. IST, indicating that the benchmark Nifty 50 will open near Tuesday’s close of 25,860.1.
Asian markets were muted as mixed US jobs data reading left investors awaiting further cues for their next move.
US job growth rebounded more than expected in November, but the unemployment rate rose to a four-year high of 4.6%.
Investors will now watch US consumer price inflation data for November due on Thursday.
A sharply divided Federal Reserve cut rates last week but signaled a pause on further easing in the near term.
Higher interest rates in the US make emerging markets such as India less attractive to foreign portfolio investors.
Foreign investors sold Indian shares worth 23.8 billion rupees ($261.74 million) on Tuesday, marking their eighth consecutive session of selling, as per provisional data.
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