Indian Shares Set To Follow Global Peers Higher As Inflation Concerns Ease

(RTTNews) - Indian shares are seen opening higher on Friday, tracking gains in global markets as a pullback in oil prices and global bond yields helped ease inflation and interest-rate concerns.

Benchmark indexes Sensex and Nifty swung between gains and losses before ending on a mixed note Thursday.

The rupee breached the 96 level before recovering to settle 2 paise higher at 95.89 against the U.S. dollar, snapping its seven-day falling streak on heavy dollar selling by banks.

Foreign institutional investors (FIIs) net sold shares worth Rs 3,208.76 crore on Thursday while domestic institutional investors (DIIs) net bought shares to the extent of Rs. 3,617.75 crore, according to provisional exchange data.

Asian markets were broadly higher this morning, following an overnight rally on Wall Street.

Gold inched up to $4,350 an ounce, after having snapped a three-day decline the previous day on the back of easing oil prices and a weaker dollar.

Brent crude futures fell toward $104 a barrel, extending losses for a third session on hopes of limited supply disruption and renewed diplomatic efforts to end the conflict.

It was reported that China privately urged Iran to curb Houthi attacks after Saudi Arabia's appeal, a move that could potentially ease disruptions around the Bab el-Mandeb.

U.S. President Donald Trump stated that Washington is "hopefully toward the end" of its fighting with Iran and that he has spoken "directly" with Iranian officials.

Ahead of a planned meeting next Tuesday with leaders from six Gulf countries on the sidelines of the UN General Assembly in New York, Trump said that he is approaching a critical juncture in the Iran war over whether to resume massive attacks to bring the conflict to a close.

U.S. stocks rose sharply overnight as oil prices and bond yields retreated amid optimism surrounding Saudi Arabia's efforts to reroute crude exports through Oman and restore the East-West pipeline.

The Fed's first interest-rate hike in three years also instilled confidence in investors regarding the central bank's resolve to bring inflation under control.

In economic releases, applications for U.S. employment benefits fell to the lowest since July last week and recurring claims dropped to a more than two-year low, signaling the labor market is on a solid footing.

The tech-heavy Nasdaq Composite soared 1.7 percent, the S&P 500 climbed 1.1 percent and the narrower Dow advanced 0.6 percent.

European stocks closed firmly higher on Thursday due to declining oil prices and reduced pressure in the bond market, supported by the Fed's hawkish stance.

The pan-European STOXX 600 gained 0.9 percent. The German DAX surged 0.7 percent and France's CAC 40 climbed 0.6 percent.

The U.K.'s FTSE 100 rallied 1.2 percent as the Bank of England (BoE) held interest rates but warned that a hike may be necessary if the Iran war drags on.

The BoE also paused sales of British government bonds for the next six months and halted sales of long-dated gilts entirely as part of its quantitative-tightening program, bringing relief to a battered bond market.