(fxcue news) - Indian shares look set to open lower on Thursday as investors weigh the implications of Donald Trump's return to presidency. U.S. Republicans are projected to retake control of the Senate for the first time in four years, but control of the House remains up for grabs. It is feared the global economy may face potentially detrimental shocks to growth and inflation if Trump implements the kind of import tariffs he had pledged. Inflationary pressures resulting from his actions might push up the dollar and bond yields and could further impact FII inflows into India in the short term. Benchmark indexes Sensex and Nifty rose over 1 percent each on Wednesday, with IT stocks leading the surge as Trump claimed victory in the 2024 presidential contest. The rupee suffered its largest decline in over four months, dropping 17 paise to close at 84.28 against the greenback. Asian stocks were mostly lower this morning, with Chinese and Hong Kong markets bucking the weak regional trend as lawmakers meet this week to formulate measures to bolster growth. Gold and copper prices plummeted as Trump's victory sent the U.S. dollar soaring. Oil clung to modest gains after falling slightly on Wednesday as new data showed an unexpected increase in U.S. crude oil inventories. U.S. stocks hit a record high overnight while Treasury yields jumped across the curve as Trump returned to the White House in a moment of historic consequence for American democracy. It is believed a Trump administration will scale back government regulations and be less hostile to mergers and acquisitions but policies such as tax cuts and tariffs could trigger price pressures. The Dow soared 3.6 percent, the tech-heavy Nasdaq Composite surged 3 percent and the S&P 500 added 2.5 percent. European stocks gave up early gains to end lower on Wednesday amid apprehensions about Trump's policies on tariffs and immigration. The pan European STOXX 600 dropped half a percent. The German DAX lost 1.1 percent, France's CAC 40 shed half a percent and the U.K.'s FTSE 100 finished marginally lower.