Sensex, Nifty Seen Tad Higher Amid Mixed Catalysts

(RTTNews) - Indian shares may open modestly higher on Thursday, as investors weigh strong global cues against rallying oil prices and signs of deceleration in India's GDP growth, dragged down mainly by the poor performance of manufacturing and mining sectors. GDP grew by 6.3 percent in the July to September quarter, down from explosive growth of 13.5 percent in the previous quarter, as per provisional estimates released by the National Statistics Office.

GDP had expanded by 8.4 percent in the corresponding quarter of 2021-22.

Benchmark indexes Sensex and Nifty jumped around 0.7 percent each on Wednesday to extend gains for a seventh straight session and reach fresh record highs on the back of firm global cues.

The rupee closed at 81.43 per U.S. dollar as against 81.72 per dollar the previous day, notching its first monthly gain this year amid the semi-annual rebalancing of the MSCI India index.

Asian markets traded higher this morning, as China reopening hopes and broad weakness in the dollar in the wake of Fed Chair Jerome Powell's dovish remarks in a speech helped improve risk sentiment. The dollar tumbled to a three-month low versus the Japanese yen while oil held steady after having climbed about 3 percent on Wednesday.

U.S. stocks rallied overnight and recorded their first back-to-back monthly gains since 2021 after Powell indicated the central bank might moderate the pace of rate increases as soon as December.

At the same time, Powell noted that restoring price stability will require holding policy at a restrictive level for some time until signs of progress emerge on inflation.

Economic data painted a mixed picture, with private payrolls growth slowing in November and third-quarter GDP growth revised up to 2.9 percent from 2.6 percent.

The Dow jumped 2.2 percent to hit a new seven-month closing high, while the tech-heavy Nasdaq Composite and the S&P 500 surged 4.4 percent and 3.1 percent, respectively to reach their best closing levels in over two months.

European stocks snapped a three-day losing streak on Wednesday as data showed eurozone inflation slowed more than expected in November.

The pan European STOXX 600 gained 0.6 percent. The German DAX edged up 0.3 percent, France's CAC 40 index climbed 1 percent and the U.K.'s FTSE 100 added 0.8 percent.