Sensex, Nifty Seen Opening Slightly Higher In Cautious Trade

(RTTNews) - Indian shares may open on a firm note Friday after new inflation and labor market data from the United States reinforced expectations the Federal Reserve will pause interest rate hikes at the next policy meeting.

Investors will also react to the latest earnings results from top companies including Grasim, Hero Moto Corp, Biocon and LIC.

India's retail inflation data is due later in the day, with economists expecting the consumer price index (CPI) inflation to have risen above the 6 percent-mark on high vegetable prices in July.

Benchmark indexes Sensex and Nifty fell around half a percent each on Thursday after the RBI left its benchmark interest rates unchanged but ordered banks to maintain 10 percent incremental CRR. The rupee ended 11 paise higher at 82.71 against the dollar. Asian stocks were mixed in cautious trade this morning while gold rebounded from over one-month low on the back of a retreat in U.S. bond yields and the dollar index.

Oil prices were little changed after ending sharply lower Thursday on concerns about the outlook for fuel demand in China.

U.S. stocks ended on a flat note overnight, giving up early gains after data showed inflation rose less than expected in July and weekly jobless claims rose more than expected to the highest level in a month, raising hopes that the Fed was close to end its tightening cycle and could start cutting rates early next year.

The consumer price index rose to an annual 3.2 percent in July from 3.0 percent in June and versus estimates of 3.3 percent. Annual core inflation ticked down to 4.7 percent from June's 4.8 percent.

The Dow edged up 0.2 percent, the tech-heavy Nasdaq Composite inched up 0.1 percent and the S&P 500 finished marginally higher.

European stocks closed higher on Thursday on the back of strong corporate earnings and encouraging U.S. inflation data.

The pan European STOXX 600 jumped 0.8 percent. The German DAX gained 0.9 percent, France's CAC 40 rallied 1.5 percent and the U.K.'s FTSE 100 added 0.4 percent.