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Indian shares are set to open higher on Thursday, tracking a rally in global equities after a softer-than-expected U.S. consumer inflation print raised expectations of at least two interest rate cuts in 2024.

The Gift Nifty was trading at 22,386.50 as of 8:19 a.m. IST, indicating that the Nifty 50 will open above Wednesday's close of 22,200.55.

Wall Street indexes registered record closing highs overnight as U.S. consumer prices rose less than expected in April, suggesting inflation has resumed a downward trend.

Other Asian peers also rallied, buoyed by the inflation data, while U.S. Treasury yields and the dollar retreated.

"The U.S. inflation report should be music to ears for equity markets," said Yogesh Kansal, co-founder of global investing platform Appreciate.

Markets are now pricing in two rate cuts in 2024, with the a 25 basis point cut expected in September, according to the CMEGroup's FedWatch tool.

U.S.-rate sensitive information technology sector will be in focus, as Indian IT companies derive a significant portion of their revenue from the United States. The index closed down 0.02% on Wednesday snapping two-day winning streak.

The Nifty 50 has gained 0.66% so far this week while S&P BSE Sensex is up 0.44%, after dropping 2% last week amid elevated volatility and sustained foreign selling.

STOCKS TO WATCH

** Adani Ports and Special Economic Zone - Norway's central bank said its executive board has decided to exclude the Indian ports operator from its government pension fund over ethical concerns.

** Jindal Stainless - India's biggest stainless steel maker by volumes reports a fourth-quarter profit drop on softer steel prices.

** TVS Motor - Company launches operations in Italy.

** Key earnings - Mahindra & Mahindra, Hindustan Aeronautics Ltd, Biocon.

($1 = 83.4420 Indian rupees)