Sensex, Nifty To Follow Global Peers Higher On Fed Pause Hopes

(RTTNews) - Indian shares may open higher on Friday, helped by firm global cues and government data showing that GST collection grew 12 percent year-on-year in May.

Benchmark indexes Sensex and Nifty fell around 0.3 percent each on Thursday to extend losses for a second consecutive session.

The rupee rose 0.38 percent to close at 82.405, hitting a two-week high and marking its best single-day gain in two months.

Foreign institutional investors (FIIs) started June month as net sellers after making a stellar buying in May, NSE data showed.

Asian markets traded higher this morning as the U.S. Senate raced to pass a bipartisan debt deal approved overwhelmingly by the House of Representatives.

The dollar hovered near a one-week low versus major peers, while gold traded flat but was on course for its biggest weekly gain in nearly two months on hopes that the Federal Reserve may pause interest rate hikes.

Oil extended overnight gains, with focus shifting to U.S. nonfarm payrolls data due out later in the day and the June 4 OPEC+ policy meeting.

U.S. stocks rose overnight amid signs of progress on the U.S. debt ceiling bill and receding bets for a rate hike by the U.S. Federal Reserve this month.

The tech-heavy Nasdaq Composite surged 1.3 percent and the S&P 500 added 1 percent to reach their best closing levels in over nine months while the Dow gained half a percent.

In economic releases, manufacturing contracted for a seventh straight month in May and jobless claims increased less than expected last week while private sector employment rose more than expected in May, separate reports showed.

European stocks ended on a buoyant note Thursday after data showed Eurozone inflation fell more than expected to 6.1 percent in May.

The pan European STOXX 600 advanced 0.8 percent. The German DAX rallied 1.2 percent, while France's CAC 40 and the U.K.'s FTSE 100 both rose about 0.6 percent.