Indian shares look set to open higher on Friday, tracking firm cues from global markets as declining Covid-19 case counts and upbeat U.S. jobless claims data boosted investors’ appetite for riskier assets.
The Reserve Bank of India’s interest-rate decision is awaited, with analysts expecting that the central bank would hold interest rates and continue with accommodative policy stance so that necessary monetary action could be taken to push growth. This is the first MPC meeting after the presentation of the Union Budget 2021-22.
Benchmark indexes Sensex and the Nifty rose about 0.7 percent on Thursday to hit fresh record closing highs, while the rupee settled flat at 72.96 against the U.S. dollar for the second straight session.
Asian stocks remain broadly higher this morning and Treasury yields rose in anticipation of a large pandemic relief bill from Washington while the dollar is on track to post its biggest weekly gain in three months.
Gold inched higher but remains on course to post its worst week in ten amid dollar strength. Oil headed for its biggest weekly gain since October on expectations for stronger oil demand.
U.S. stocks rallied overnight as investors cheered another batch of upbeat earnings from big-name companies and data showing a continued decline in first-time claims for U.S. unemployment benefits.
The Dow Jones Industrial Average climbed 1.1 percent to extend gains for the fourth straight session amid signs of progress on a pandemic-relief package, while the tech-heavy Nasdaq Composite rallied 1.2 percent and the S&P 500 jumped 1.1 percent to hit fresh record closing highs.
European stocks gained ground for the fourth day running on Thursday as investors assessed the latest batch of earnings reports and remained hopeful that a pickup in vaccination drive will boost economic growth.
News about former ECB chief Mario Draghi agreeing to help form a new Italian government also contributed to the positive mood.
The pan European Stoxx 600 advanced 0.6 percent. The German DAX gained 0.9 percent and France’s CAC 40 index rose 0.8 percent while the U.K.’s FTSE 100 slipped 0.1 percent.
Market Analysis
Indian Shares Seen Opening Higher Ahead Of MPC Decision
2021-02-05 03:05:12
