Indian shares to open higher on easing Fed rate-hike bets
- GIFT Nifty futures were at 24,414
Indian shares are set to rise as a softer US jobs report reduces Federal Reserve rate hike concerns, boosting risk appetite for emerging markets like India.
- Impact of the softer US jobs report on global markets.
- Foreign and domestic investment trends in Indian equities.
- Factors driving recent gains in Indian benchmark indices.
BENGALURU: Indian shares were set to extend gains on Friday after a softer US jobs report eased worries about a near-term interest rate increase by the Federal Reserve and improved risk appetite for emerging markets.
GIFT Nifty futures were at 24,414, as of 7:43 a.m. IST, indicating the Nifty 50 could open above Thursday’s close of 24,175.7.
US job growth slowed sharply in June and payroll gains for the prior two months were revised lower, pointing to a cooling labour market and prompting financial markets to dial back expectations for a near-term rate hike.
Lower U.S. interest rates encourage capital flows to emerging markets like India.
Foreign portfolio investors (FPIs) sold Indian shares worth 3.12 billion rupees ($32.71 million) on Thursday, as per provisional data. They have offloaded a record $29.46 billion worth of shares so far this year.
Domestic institutional investors remained buyers for an eighth straight session on Thursday.
The benchmark Nifty 50 and the Sensex rose 1.3% in the last two sessions, mainly supported by a drop in crude oil prices.