BENGALURU: Indian shares are set to open higher on Friday, tracking global peers, as increased probability of a rate pause from the US central bank lifted sentiment a day after the Reserve Bank of India kept rates unchanged.
India’s NSE stock futures listed on the Singapore exchange were up 0.20% at 18,758.50, as of 8:01 a.m. IST.
Wall Street equities closed higher overnight with the S&P 500 rising to a new 2023 high, as odds of a rate pause by the US Federal Reserve, in its upcoming meeting on June 14, rose to 75% from 66% after data showed that weekly jobless claims hit over a 1-1/2-year high, signalling a cooling economy.
Investors are also awaiting key rate decisions from the European Central Bank and Bank of Japan next week. Asian markets edged higher.
India’s central bank kept the repo rate at 6.50% for a second straight meeting on Thursday but indicated that monetary conditions will remain tight to bring inflation down to the 4% target.
“The headline inflation still remains above the target and being within the tolerance band is not enough,” the Reserve Bank of India Governor Shaktikanta Das said in his policy statement.
Indian shares snapped a four-day winning streak on Thursday, but the benchmarks are still below 2% of all-time high levels.
Analysts expect the Nifty 50 to gradually move towards a new lifetime high, aided by healthy macroeconomic fundamentals and consistent foreign buying.
Indian shares slide as RBI signals tight policy ahead
Foreign institutional investors (FIIs) bought 2.12 billion rupees ($26 million) worth of Indian equities on a net basis on Thursday, while domestic investors sold 4.05 billion rupees of shares, as per provisional NSE data.
Comments
Comments are closed.