Sensex, Nifty Seen Higher At Open On US Trade Optimism

(RTTNews) - Indian shares are seen opening higher on Thursday as trade optimism prevails and Infosys Q1 profit beat estimates.

On the contrary, Tata Consumer Products and Dr Reddy's Laboratories posted weaker-than-expected results.

Globally, Google parent Alphabet beat earnings estimates and raised its capex guidance, citing increasing AI demand.

SK Hynix Inc., the largest supplier of artificial intelligence chips to Nvidia Corp., logged record profits in Q2, while Tesla warned of potential "rough quarters" after missing earnings and revenue estimates.

Meanwhile, investors await the outcome of key U.S.-India talks ahead of the August 1 deadline.

Officials warn that any delay or breakdown in ongoing discussions could result in higher tariffs for Indian goods in the U.S. market, one of India's largest export destinations.

Hopes for an interim India-U.S. trade deal remain dim due to ongoing tariff disputes on key agricultural goods.

A U.S. team is expected to visit India in August for the next round of negotiations after the fifth round concluded last week in Washington.

India and the United Kingdom are set to sign a free trade agreement (FTA) later today, resetting bilateral trade ties and potentially increasing two-way trade by billions of dollars annually.

Benchmark indexes Sensex and Nifty jumped around 0.7 percent and 0.6 percent, respectively on Wednesday while the rupee settled 3 paise lower at 86.41 against the dollar, extending losses for the sixth consecutive session, pressured by a stronger greenback and foreign fund outflows.

Asian markets were mostly higher this morning and the U.S. dollar index slipped toward 97 to hover near a three-week low, while gold steadied below $3,400 per ounce after a previous session decline. Oil prices were slightly higher due to positive sentiments surrounding U.S. trade talks.

U.S. stocks climbed overnight as President Donald Trump announced trade deals with Japan and the Philippines, sparking optimism for similar agreements with other major economies ahead of the looming tariff deadline.

Investors shrugged off data that showed U.S existing home sales hit a nine-month low in June.

The tech-heavy Nasdaq Composite Nasdaq and the S&P 500 gained 0.6 percent and 0.8 percent, respectively to reach new record closing highs while the Dow jumped 1.1 percent.

European stocks rose on Wednesday to halt three sessions of losses after reports emerged that EU officials are closing in on a U.S. trade deal that would echo the U.S.-Japan deal.

The pan European STOXX 600 rallied 1.1 percent, marking its biggest single-day gain since June 27.

The German DAX rose 0.8 percent, France's CAC 40 surged 1.4 percent and the U.K.'s FTSE 100 added 0.4 percent.