Indian shares are likely to open higher on Friday, mirroring positive Asian cues after data showed U.S. jobless claims held at a four-year low and German business confidence exceeded forecasts. The euro rose to a 2-1/2-month high against the dollar before GDP reports from Germany and the UK slated to be released later in the European session.
Having said that, the recent hike in global oil prices is a concern as India imports nearly 80 percent of its oil requirements. The rise in oil prices if sustained may put upward pressure on inflation and limit the scope for further monetary easing.
Crude futures for April delivery rose $1.55, or 1.5 percent to settle at $107.83 a barrel on the New York Mercantile Exchange on Thursday, its highest closing level since May 5, helped by lingering concerns about possible supply disruptions and a weak dollar.
Indian shares ended in the red for a second day in a row on Thursday, as negative Asian cues prompted investors to square off positions on the settlement day of February series derivative contracts. The benchmark 30-share Sensex moved in the range of 18,005- 18,250 before ending down 67 points or 0.37 percent at 18,079, while the broader Nifty index fell by 22 points or 0.4 percent to 5,483.
U.S. stocks posted modest gains overnight, as better-than-expected data on initial jobless claims overshadowed some disappointing earnings news. The Dow and the S&P 500 rose around 0.4 percent each, while the tech-heavy Nasdaq gained 0.8 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.