Sensex, Nifty Seen Opening Little Changed In Cautious Trade

(RTTNews) - Indian shares are seen opening little changed on Friday, with rising bond yields and climbing oil prices likely to weigh on sentiment ahead of a long holiday weekend.

Indian financial markets will observe a trading holiday on Monday on account of Independence Day.

In spite of rising rates of inflation, India is expected to have the fastest economic growth of any nation around the world in 2022, media reports quoted a senior government official as saying on Thursday.

Analysts at Morgan Stanley also believe that the Indian economy is set for its best run in over a decade in 2022-23.

Benchmark indexes Sensex and the Nifty jumped around 0.9 percent and 0.7 percent, respectively on Thursday while the rupee fell by 36 paise to close at Rs. 79.61 against the dollar amid concerns over rising crude oil prices.

Asian stocks traded mixed this morning, with Japanese markets leading regional gains. A dollar gauge held steady and Treasuries were mixed after San Francisco Fed President Mary Daly said inflation is too high and that she anticipates more restrictive monetary policy in 2023.

Oil hovered below $94 a barrel and headed for a weekly gain of more than 5 percent as recession fears eased. Gold was subdued but was on course for a fourth weekly gain.

U.S. stocks gave up early gains to end mostly lower overnight, as recession worries persisted and top Fed officials signaled they expect interest rate hikes to continue into 2023.

The latest economic data painted a mixed picture, with jobless claims rising for a second straight week while the July producer price index showed a surprise decline from June.

The Dow finished marginally higher while the S&P 500 ended little changed with a negative bias and the tech-heavy Nasdaq Composite shed 0.6 percent.

European stocks ended mixed on Thursday as investors continued to assess the U.S. consumer inflation report released the previous day.

The pan European Stoxx 600 ended flat with a positive bias. The German DAX slipped marginally and the U.K.'s FTSE 100 dropped 0.6 percent while France's CAC 40 index rose 0.3 percent.