Mumbai: Indian stock markets are likely to tick lower on Friday dragged by weakness in global peers.
Asian shares pulled back on Friday as concern over renewed trade tensions between Washington and Beijing weighed on sentiment ahead of the release of June trade data from China. Expectation of an interest rate cut by the US Federal Reserve, later this month, arrested losses.
Bets on a rate cut remained strong despite a rise in US consumer inflation in June, and helped push the S&P 500 index to a record high closing on Thursday.
The S&P 500 gained 0.23% to end at a record closing high of 2,999.91 points and the Dow Jones Industrial Average also hit a record high close of 27,088.08 points on Thursday, having risen 0.85% during the day.
On Friday, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.05% in early deals, with Australian shares sliding 0.16% and Japan's Nikkei stock index trimming 0.11%.
Federal Reserve Chairman Jerome Powell indicated on Thursday that a rate cut was likely at the Fed’s next meeting as businesses curb investment due to trade disputes and a slowdown in global economic growth.
President Donald Trump on Thursday said China was not living up to promises it made on buying agricultural products from farmers in the US.
Later on Friday, China will release trade data for June, with analysts expecting exports to have fallen as weakening global demand and a sharp hike in US tariffs took a toll on the world’s largest trading nation.
Back home, the markets regulator is probing whether the management of InterGlobe Aviation Ltd misled shareholders by downplaying the true extent of differences between the co-founders of India’s largest airline, according to a Mint report.
Shares of Infosys will be in focus as the IT major is expected to announce its June quarter earnings later today. Edelweiss Securities Ltd estimates its revenue to grow 2.8% quarter-on-quarter in constant currency terms, while dollar growth is seen down marginally due to cross currency headwinds. EBITDA margin is likely to fall 60 basis points (bps), hit by rupee appreciation (30bps), while wage hikes could further pressurise the same. Operational efficiencies are expected to partially nullify this impact. Commentary on digital growth rates, BFSI and initiatives to manage attrition will be key things to watch for.
Meanwhile, among currencies, the dollar fell 0.09% against the yen to 108.38, while the euro edged 0.06% higher to buy $1.1259. The dollar index, which tracks the greenback against a basket of six major rivals, was flat at 97.044.
(Reuters contributed to the story)