BENGALURU: India’s benchmark indexes are set to open little changed on Friday, as traders await a crucial US jobs report to gauge the size and speed of the Federal Reserve’s interest rate cuts.
The GIFT Nifty was trading at 25,176 points as of 8:05 a.m. IST, indicating that the NSE Nifty 50 will open near its previous close of 25,145.1.
The blue-chip index hit a record high at the start of the week but has lost 0.36% since as investors remain jittery about the health of the US economy and due to the lack of domestic cues.
“Indian equities have taken a pause and are trading at higher zones, with every dip being bought ahead of key US data and the Fed’s rate decision later in the month,” said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
Concerns over a slowdown in the US labour market have re-emerged after data showed soft job openings overall and fewer job gains in the private sector, raising expectations of an aggressive 50-basis-point rate cut when the Fed meets on Sept. 17-18.
The US non-farm payroll report for August, due after Indian markets close, will give more clarity on the health of the labour market, which will guide the odds of the quantum of a rate cut.
Indian shares set to open lower as traders brace for US data
A weak report will raise the odds of a 50 bps cut, while a report showing a recovering labour market will bolster bets of a 25 bps cut.
A US rate cut is to increase foreign fund inflows to emerging markets such as India.
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