Indian shares seen opening higher as Fed rate hike view eases
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Indian shares are set to open higher on Friday as expectations of an interest rate pause from the U.S. Federal Reserve boosted global risk sentiment and strong domestic macroeconomic factors added support.
India's NSE stock futures listed on the Singapore exchange were up 0.4% at 18,644, as of 7:52 a.m. IST. The Nifty 50 index and the S&P BSE Sensex closed slightly lower on Thursday.
On the domestic front, easing inflation, stronger-than-expected economic growth data, and fast-paced expansion of India's factory output have improved investor confidence, analysts said.
Indian automakers on Thursday reported robust sales of sport utility vehicles (SUVs) in May on steady demand and saw an uptick in two-wheeler sales, adding to the positive sentiment.
Data overnight showed the number of Americans filing new claims for unemployment benefits rose modestly last week, while U.S. manufacturing contracted for a seventh straight month in May.
The data, along with calls from Fed officials for a pause in the June 13-14 meeting, drove bets for a rate hike lower.
Foreign institutional investors (FIIs) sold 710.7 million rupees worth of Indian equities on Thursday, while domestic investors bought 4.89 billion rupees of shares on a net basis, as per provisional NSE data.
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