Sensex, Nifty Seen Opening Up After Mixed US Data, Powell Comments

(RTTNews) - Indian shares may open slightly higher on Thursday as investors react to positive global cues and await this week's RBI policy meeting for directional cues.

The upside may remain limited and profit taking at higher levels cannot be ruled out due to lingering geopolitical tensions. It is feared that higher commodity prices posed additional risk to the inflation and interest rate outlook.

Benchmark indexes Sensex and Nifty ended a choppy session marginally lower on Wednesday while the rupee ended at a record closing low of 83.43 against the dollar, weighed down by dollar demand from local oil companies and weakness in its Asian peers.

Indian capital markets are commanding high valuations as foreign investors are bullish about the country's economic growth on the back of strong domestic macroeconomic data, SEBI Chairperson Madhabi Puri Buch said at a CII event on corporate governance.

Asian stocks traded mostly higher this morning, with China, Taiwan and Hong Kong markets closed for a holiday.

Commodity-related stocks were surging as gold scaled another record high, oil hit a new five-month high, and copper hovered near a 13-month high as a result of supply disruptions and escalating geopolitical tensions.

U.S. stocks fluctuated before ending mixed overnight as Atlanta Fed President Raphael Bostic and Fed Chair Jerome Powell both emphasized the need for more debate and data before cutting rates.

In economic releases, private sector job growth expanded in March at its fastest pace since July 2023 while the services industry growth slowed further in the month, separate reports showed.

The Dow slipped 0.1 percent to extend losses for a third day running, while the S&P 500 inched up 0.1 percent and the tech-heavy Nasdaq Composite added 0.2 percent.

European stocks closed higher on Wednesday as a measure of euro zone inflation fell more than expected in March and ECB's Robert Holzmann said the central bank could start cutting interest rates in June.

The pan European STOXX 600 gained 0.3 percent. The German DAX rose half a percent, France's CAC 40 edged up 0.3 percent and the U.K.'s FTSE 100 finished marginally higher.