Sensex, Nifty Seen Opening Up After GDP Data

Indian shares are seen opening higher on Friday, though muted cues from Asian markets may play spoilsport as the session progresses.

India’s GDP growth in the September quarter beat estimates by a huge margin and core sector growth grew strongly in October on low base effect, suggesting the Indian economy is well on course to meet the RBI’s 6.5 percent growth target for FY24.

GDP grew 7.6 percent during the July-September quarter of the current financial year 2023-24 (Q2FY24), making India the fastest-growing major economy in the world.

The output of eight key infrastructure sectors jumped 12.1 percent in October 2023 against 0.7 percent expansion in the year-ago period.

Benchmark indexes Sensex and Nifty ended Thursday’s session marginally higher while the rupee ended down 7 paise at a record closing low of 83.40 against the dollar.

Asian markets were subdued this morning despite China’s Caixin manufacturing PMI reading coming in above expectations.

The dollar was on the back foot and gold ticked higher on Fed pause bets while oil extended losses after a drop of more than 2 percent overnight.

U.S. stocks ended mostly higher overnight, buoyed by signs of easing inflation and strong Q3 earnings from Salesforce.

U.S. consumer spending moderated in October, the Fed’s preferred inflation measure eased in the month and weekly jobless claims rose slightly, signaling that interest rate cuts are on the horizon.

New York Fed President John Williams said Thursday that policymakers are likely done with interest-rate hikes, but decisions will continue to be data-dependent.

The Dow jumped 1.5 percent to reach a new high for the year and the S&P 500 gained 0.4 percent to hit a three-month closing high while the tech-heavy Nasdaq Composite slipped 0.2 percent.

European stocks closed on a firm note Thursday after data showed a surprise drop in euro zone inflation in November.

The pan European STOXX 600 advanced 0.6 percent. The German DAX edged up 0.3 percent, France’s CAC 40 added 0.6 percent and the U.K.’s FTSE 100 inched up 0.4 percent.

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