Sensex, Nifty Seen Little Changed Before RBI's Rate Decision

(RTTNews) - Indian shares look set to open on a flat note Friday as investors await the Reserve Bank of India's (RBI) monetary policy decision later in the day, with the central bank widely expected to cut interest rates by 25 basis points for the third consecutive time.

Benchmark indexes Sensex and Nifty rose around half a percent each on Thursday, while the rupee ended 10 paise higher at 85.80 against the dollar despite headwinds.

Asian markets were muted this morning ahead of the U.S. Labour Department's closely watched monthly jobs report due later in the day.

Gold prices rose in Asian trade and headed for a weekly gain as the U.S. dollar faced a weekly loss due to signs of economic fragility and stalled trade negotiations.

Oil was slightly lower but headed for its first weekly gain in three as optimism over peak seasonal demand offset lingering concerns about oversupply.

U.S. stocks fluctuated before ending in the red overnight as investors weighed potential progress in U.S.-China trade talks against another round of downbeat economic data.

China and the U.S. have agreed to more tariff talks amid a trade standoff and concerns over rare earths, President Donald Trump said Thursday after speaking to Xi Jinping over the phone.

In economic news, weekly jobless claims hit a seven-month high, while a record drop in imports resulted in the narrowest U.S. trade gap since November 2023.

Fed policymakers indicated on Thursday that inflation remains a greater concern than labor market cooling, suggesting a prolonged hold on monetary policy adjustments.

The tech-heavy Nasdaq Composite fell 0.8 percent, the S&P 500 gave up half a percent and the narrowed Dow closed 0.3 percent lower.

Tesla shares plunged over 14 percent as Elon Musk and Trump's simmering feud devolved into a public war of words.

European stocks closed slightly higher on Thursday as the European Central Bank lowered its key rates by 25 basis points but hinted at a pause in its year-long easing.

The pan European STOXX 600 gained 0.2 percent. The German DAX rose 0.2 percent and the U.K.'s FTSE 100 inched up 0.1 percent, while France's CAC 40 eased 0.2 percent.