Sensex, Nifty Seen Opening Up As Treasury Yields Dip

(RTTNews) - Indian shares look set to open higher on Friday as soft labor market data from the U.S. dented demand for the dollar and Treasury yields.

That said, continued FII selling amid uncertainty surrounding the outcome of ongoing 2024 Lok Sabha elections may trigger some profit taking at higher levels as the session progresses.

In the Middle East, Israeli Prime Minister Benjamin Netanyahu has rejected international pressure to halt the war in Gaza and declared that the country will "stand alone" in its war against Hamas, if "forced."

On the earnings front, Bank of India, Bank of Baroda, Cipla, Eicher Motors and Tata Motors are among the prominent companies due to unveil their quarterly results today.

Benchmark indexes Sensex and Nifty both plunged around 1.5 percent each on Thursday to extend losses for a third straight session. The rupee inched up by 2 paise to close at 83.50 against the dollar.

Asian markets followed Wall Street higher this morning, the dollar nursed losses while gold held firm above $2,350 per ounce and was on track for a weekly gain on signs of a weakening U.S. jobs market.

Oil also headed for a weekly advance on renewed optimism for U.S. rate cuts.

Overnight, U.S. stocks posted strong gains as data showed the number of Americans filing new claims for unemployment benefits rose last week to the highest level in more than eight months, adding to expectations for rate cuts by the Federal Reserve in the coming months.

The Dow climbed 0.9 percent to extend its winning streak to a seventh straight session and reach over one-month closing high.

The S&P 500 gained half a percent and the tech-heavy Nasdaq Composite inched up 0.3 percent.

European stocks extended gains for a fifth consecutive session on Thursday after the Bank of England held interest rates steady but signaled it will cut rates this summer if inflation stays low. The pan European STOXX 600 rose 0.2 percent. The German DAX rallied 1 percent, France's CAC 40 rose 0.7 percent and the U.K.'s FTSE 100 edged up 0.3 percent.