Sensex, Nifty Seen Up On Firm Global Cues

Indian shares are seen opening higher on Thursday as investors look ahead to the RBI monetary policy decision due Friday.

The central bank is likely to maintain status quo on rates as the economic outlook remains uncertain in light of the continuing pandemic.

Meanwhile, India’s merchandise exports grew 67.39 percent year-on-year in May, official data showed with analysts attributing the growth to a weak base due to the disruption caused by a nationwide lockdown last year. Exports were up 5.15 percent in the month on a sequential basis.

Benchmark indexes Sensex and the Nifty cut early losses to end on a flat note on Wednesday, while the rupee ended down 19 paise at 73.09 against the greenback.

Asian markets were broadly higher this morning and ten-year U.S. Treasury yields dipped below 1.60 percent after Philadelphia Fed President Patrick Harker said it’s appropriate “to slowly, carefully move back” on asset purchases at the appropriate time, and to avoid any kind of “taper tantrum.”

Oil prices hit over one-year high as investors welcomed the OPEC’s decision to stick with its existing production plan.

The dollar held steady and gold hovered near a five-month high, as investors looked ahead to Friday’s U.S. jobs report for further clues about the economic recovery and the interest rate outlook.

The major U.S. averages all inched up around 0.1 percent overnight, as inflation worries persisted and the Fed’s Beige Book showed economic growth increased at a “moderate pace” from early April to late May.

European stocks ended modestly higher on Wednesday after staying somewhat sluggish for much of the day’s session.

The pan European Stoxx 600 gained 0.3 percent. The German DAX edged up 0.2 percent, France’s CAC 40 index rose half a percent and the U.K.’s FTSE 100 added 0.4 percent.

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