Indian equity benchmarks likely to open at record highs ahead of growth data
India's equity benchmarks are poised to open at record highs on Friday, driven by optimism over imminent U.S. and domestic interest rate cuts, ahead of quarterly growth data expected to stay firm on strong domestic demand.
The Gift Nifty futures were trading at 26,410.5, as of 08:09 a.m. IST, indicating that the Nifty 50 could open above the previous session's close of 26,215.55.
The Nifty and Sensex rose as much as 0.4% and 0.5% on Thursday to all-time highs of 26,310.45 and 86,055.86, respectively, before closing little changed as foreign investors booked profits.
Foreign portfolio investor (FPI) outflows from Indian markets amounted to 12.55 billion rupees (about $140 million) on Thursday, while the domestic institutional investors (DII) cushioned the sales, with inflows worth 39.41 billion rupees.
Both the Nifty 50 and Sensex hit new peaks after 14 months, among the last major markets to do so in 2025, as improving earnings, cheaper valuations, steady growth, and supportive policies fuelled the rebound.
India's economy likely stayed resilient in the July-September quarter, with gross domestic product (GDP) growth at 7.3%, buoyed by consumer demand and front-loading of production and exports ahead of U.S. tariffs, a Reuters poll said.
The data will be released after market hours on Friday.
While GDP growth remains stable, record-low inflation has dragged on nominal growth, creating room for further monetary easing, analysts said.
The Reserve Bank of India is expected to cut its key rate by 25 basis points on December 5, according to a Reuters poll.
Rate-sensitive financials have led the market gains in recent sessions.
Other Asian markets opened flat after a four-session rally on U.S. Federal Reserve rate-cut expectations in December. European markets edged up overnight, while the U.S. dollar held steady. U.S. markets were closed for the Thanksgiving holiday. [MKTS/GLOB]
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** National Highways Authority of India suspends Ashoka Buildcon from bidding for a month or until probe ends after two precast girders collapse on NH-66, killing one []
** Supreme Court upholds real estate firm Lodha Developers as V-Hotels' successful resolution applicant and directs 5.21 billion rupees security deposit
($1 = 89.3660 Indian rupees)
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