Sensex, Nifty Seen Higher On Firm Global Cues

Positive global cues and optimism about India’s growth story may help Indian shares open higher on Friday.

India’s read GDP is likely to grow 7.5 percent in the current fiscal year, which will make the country the fastest-growing major economy in the world, Prime Minister Narendra Modi said Thursday while virtually addressing the BRICS Business Forum.

Benchmark indexes Sensex and the Nifty jumped around 0.9 percent each on Thursday as oil prices extended recent declines on fuel demand concerns, helping ease worries around imported inflation.

However, the rupee closed at a record low of 78.32 against the greenback amid persistent foreign fund outflows.

Asian markets followed Wall Street higher this morning, while the dollar index seesawed after having snapped a three-day losing streak the previous day as Federal Reserve Chairman Jerome Powell gave tacit approval for a stronger U.S. dollar.

Gold traded flat and was set for a second weekly fall while oil prices extended recent losses on concerns about the outlook for energy demand.

U.S. stocks posted solid gains overnight and U.S. Treasury yields hit two-week lows as commodity prices continued to ease on worries about a possible global recession.

The Dow rose 0.6 percent, the tech-heavy Nasdaq Composite climbed 1.6 percent and the S&P 500 added 1 percent.

European stocks fell on Thursday as factory activity data released in Japan, Britain, the euro zone and United States all pointed to signs of slowing growth.

The pan-European STOXX 600 index declined 0.8 percent. The German DAX tumbled 1.8 percent, France’s CAC 40 index shed 0.6 percent and the U.K.’s FTSE 100 dipped 1 percent.