Indian shares set to extend gains after Fed cut; November inflation data eyed
Indian shares are set to open higher on Friday, extending gains after snapping a three-day losing run in the previous session following the Federal Reserve's rate cut, while investors await domestic inflation data due later in the day.
The Gift Nifty futures were trading at 26,130.5 points as of 7:47 a.m. IST, indicating that the benchmark Nifty 50 will open above Thursday's close of 25,898.55.
Other Asian markets opened higher, rising 0.7%. Overnight, Wall Street rose, with the S&P 500 posting a record closing high, while the U.S. dollar declined in the wake of the Fed's rate decision and commentary. [MKTS/GLOB]
The Nifty and Sensex gained about 0.5% each on Thursday, in a broad-based rebound after a three-session slide, while the rupee slumped to a record low on persistent foreign outflows and delay in achieving meaningful progress in India-U.S. trade deal.
"While the Fed's rate cut and commentary lifted investor sentiment, the fall in the Indian rupee kept currency-related worries elevated and limited the upside," said Ponmudi R, chief executive of Enrich Money.
The benchmarks indexes hit their all-time highs after 14 months in November, helped by a stable economy, steady domestic inflows, improving earnings and supportive fiscal and monetary policies.
However, they have struggled to sustain the climb to new peaks due to profit-taking at higher levels and pressure on the currency.
Investors are awaiting the domestic inflation reading for November, due after market hours.
Retail inflation is likely to have risen modestly in November after slipping to multi-year lows in October, a Reuters poll of economists showed.
Foreign portfolio investors offloaded Indian shares for the 11th straight session on Thursday, with outflows of 20.21 billion rupees ($223.9 million), and domestic institutional investors cushioned the selling with inflows of 37.96 billion rupees, provisional data from the NSE showed.
STOCKS TO WATCH
** Tata Power receives an annual order worth 1.56 billion rupees per year for 35 years
** NBCC secures orders worth 2.89 billion rupees
** Astra Microwave gets order valued at 1.71 billion rupees
** Vedanta emerges as successful bidder for the Genjana block containing nickel, chromium and platinum group elements
($1 = 90.2540 Indian rupees)
