Indian Shares Set To Open Higher On Firm Global Cues

(RTTNews) - Indian shares are seen opening higher on Friday, tracking firm cues from global markets as tech jitters eased and soft U.S. inflation data boosted hopes for Federal Reserve rate cuts.

That said, ongoing concerns over the weakening rupee and uncertainty surrounding the India-U.S. trade deal may lead to profit taking at higher levels as the session progresses.

Benchmark indexes Sensex and Nifty ended Thursday's session marginally lower, extending losses for a fourth consecutive session.

The rupee moved in a tight range before ending up 12 paise at 90.26 against the dollar on suspected intervention by the Reserve Bank of India.

FIIs remained net buyers and bought shares worth Rs 596 crore on Thursday, while domestic institutional investors net bought shares to the extent of Rs. 2,700 crore, according to provisional exchange data.

Asian markets were broadly higher this morning, while the dollar index and the yield on 10-year U.S. Treasuries were little changed.

Oil headed for a second weekly decline as concerns over a growing glut overshadowed potential supply disruptions stemming from Russia and Venezuela.

Gold dipped as weaker-than-expected U.S. inflation data diminished its appeal as an inflation hedge.

Overnight, U.S. stocks closed higher as a softer-than-expected consumer price index inflation reading for November added to bets that the Federal Reserve will cut interest rates further in the new year.

Data showed the consumer price index rose 2.7 percent in November from a year earlier and 2.6 percent on a "core" basis — both figures coming in below economists' expectations.

Another report showed first-time claims for unemployment benefits declined roughly in line with economist estimates in the week ended December 13th.

Micron Technology's better than expected quarterly results and blowout guidance also sparked a rebound in technology shares.

The tech-heavy Nasdaq Composite jumped 1.4 percent, while the S&P 500 gained 0.8 percent and the Dow edged up by 0.1 percent to snap their four-day losing streaks. European stocks closed on a firm note on Thursday despite the European Central Bank and Bank of England issuing hawkish signals on the outlook for their rate paths.

The pan European Stoxx 600 advanced 1 percent. The German DAX rallied 1 percent, France's CAC 40 surged 0.8 percent and the U.K.'s FTSE 100 added 0.7 percent.