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Indian shares are set to open higher on Thursday, as rising expectations of an end to the U.S. Federal Reserve's rate hike cycle boosted risk appetite.

India's GIFT Nifty was up 0.17% at 19,751.50 as of 8:13 a.m. IST on Thursday, compared to the benchmark Nifty 50's Wednesday close of 19,675.45.

U.S. stocks closed slightly higher on Wednesday, as fresh inflation data reinforced investor hopes that the Federal Reserve is done raising interest rates.

Meanwhile, a fall in U.S. retail sales in October after months of strong gains pointed to cooling economy and strengthened expectations that the Fed is done hiking rates.

The odds of a 25 basis point rate cut in May 2024 rose to 51% compared to 45% on Tuesday ahead of the U.S. inflation data, according to the CME FedWatch tool.

However, Asian stock markets struggled for momentum on Thursday, with the MSCI Asia ex-Japan index losing 0.7%, after jumping 2.77% in the previous session.

India's blue-chips Nifty 50 and Sensex jumped to near one-month highs on Wednesday.

Analysts said that soft U.S. inflation data would push Treasury yields lower and trigger foreign buying in domestic equities.

Foreign institutional investors (FIIs) snapped a 15-session selling streak on Wednesday, buying Indian shares worth 5.50 billion rupees ($66.1 million) on a net basis.

Domestic institutional investors extended their buying streak for the 20th session in a row, adding a net 6.10 billion rupees worth of shares.

STOCKS TO WATCH:

** Bajaj Finance: Reserve Bank of India stops the non-banking finance company from issuing loans under two products.

** One 97 Communications: Paytm operator announces partnership with global travel technology company Amadeus.

** Cipla Drug maker completes sale of its entire 51.18% stake in Uganda-based Cipla Quality Chemical Industries for $25 million.

** Dabur India: Two units of the company dismissed as defendants in hair relaxer lawsuit in the U.S.

($1 = 83.2100 Indian rupees)