Sensex, Nifty Likely To Open Higher Ahead Of RBI Rate Decision

(RTTNews) - Indian shares look set to open on a positive note Friday as investors cheer interest rate cuts from the European Central Bank and Bank of Canada and look ahead to the Reserve Bank of India's monetary policy announcement later today for directional cues. India's apex bank is widely expected to hold the repo rate unchanged at 6.5 percent.

Traders also await Prime Minister Narendra Modi's oath ceremony on Sunday after his allies chose him as their leader at a key meeting.

Benchmark indexes Sensex and Nifty both rose around 1 percent each on Thursday, extending gains for a second consecutive session on expectations of political stability and policy continuity after the new coalition government assumes office.

Asian markets were mostly higher this morning, though overall gains remained limited as traders refrained from big bets ahead of the all-important U.S. non-farm payrolls report due later in the day that could influence the Fed's rate trajectory.

U.S. Treasuries held steady, and the dollar hovered near an eight-week low while gold dipped, after having hit a two-week high on Thursday.

Oil prices were little changed after two straight sessions of gains as OPEC ministers said the cartel could revise oil supply deal if needed.

On Thursday, the Saudi energy minister said OPEC+ can pause or reverse oil production increases if the market weakens.

U.S. stocks ended narrowly mixed overnight as weak jobless claims data and Wednesday's ADP report spurred rate cut hopes.

While the Dow edged up 0.2 percent, both the tech-heavy Nasdaq Composite and the S&P 500 finished marginally lower.

European stocks closed on a firm note Thursday as the European Central Bank delivered its first interest rate cut in five years, raised inflation forecasts for 2024 and 2025, and emphasized the need for more data and analysis to confirm the disinflationary path.

The pan European STOXX 600 climbed 0.7 percent. The German DAX and France's CAC 40 both rose about 0.4 percent while the U.K.'s FTSE 100 added half a percent.