Sensex, Nifty Seen Slightly Higher On US Economic Optimism

(RTTNews) - Indian shares may open a tad higher on Friday as trading resumes after a holiday the previous day for Bakri Id celebration across the nation.

On Wednesday, benchmark indexes Sensex and Nifty hit fresh record highs before closing up around 0.8 percent each. The rupee slipped 2 paise to settle at 82.04 against the dollar.

Signs of a resilient U.S. economy may offer some support today as investors fret about the impact of higher interest rates on global economic growth.

Meanwhile, against the backdrop of the allegations made by U.S.-based Hindenburg Research against the Adani Group in late January, the Securities and Exchange Board of India's (SEBI) board has announced tighter disclosure norms for foreign portfolio investors to prevent possible circumvention of minimum public shareholding rules or possible misuse of the FPI investment route.

Asian markets were mostly higher this morning, though the upside remained limited after bond yields surged overnight on bets for further rate hikes. Tokyo inflation and industrial production numbers drew some interest early in the session. Elsewhere, China's factory activity shrank for a third straight month in June, reviving calls for further stimulus.

The dollar index held steady near a two-week high while oil and gold prices were little changed as traders positioned for the Fed's preferred inflation gauge due later in the day.

U.S. stocks ended mostly higher overnight, with banks rallying after Federal Reserve's annual bank stress tests showed that large banks are well positioned to weather a severe recession.

Meanwhile, U.S. GDP was revised up notably to a 2 percent annualized advance in the first quarter and the number of Americans filing new claims for unemployment benefits fell last week by the most in 20 months, pointing to continued strength in the world's largest economy.

The Dow climbed 0.8 percent and the S&P 500 gained half a percent while the tech-heavy Nasdaq Composite finished marginally lower.

European stocks ended Thursday's session on a mixed note as investors weighed the prospects of further policy tightening by major central banks.

The pan European STOXX 600 inched up 0.1 percent. The German DAX ended flat with a negative bias and the U.K.'s FTSE 100 shed 0.4 percent while France's CAC 40 edged up 0.4 percent.