Sensex, Nifty Seen Up On Global Cues; RBI Policy Eyed

Indian shares look set to open higher on Friday, mirroring positive global cues and amid expectations that the Reserve Bank of India (RBI) will keep a status quo on key policy interest rates and accommodative stance at the end of the three-day bi-monthly review meeting later today.

Tata Consultancy Services, India's largest software services exporter, is slated to declare its quarterly earnings results later in the day and most brokerages are expecting the company to post double-digit growth in net profit and revenue.

Meanwhile, Fitch Ratings slashed India's GDP growth forecast to 8.7 percent for the current fiscal but raised GDP growth projection for FY23 to 10 percent, saying the second Covid-19 wave would 'delay rather than derail' the economic recovery.

Benchmark indexes Sensex and the Nifty jumped around 0.8 percent each on Thursday while the rupee recovered by 19 paise to end at 74.79 against the greenback.

Asian markets traded up this morning after a survey showed activity in China's services sector returned to growth in September.

The U.S. dollar hovered below a one-year high to major peers while Treasury yields rose as investors await key U.S. jobs data for any fresh insight into the timing of Federal Reserve tapering.

Oil headed for a seventh weekly gain, the longest run since December, after the U.S. Energy Department said that it had no plans "at this time" to tap the nation's oil reserves.

U.S. stocks rose overnight as data showed a bigger-than-expected drop in new jobless claims last week and lawmakers reached an agreement to temporarily extend the debt limit through early December, avoiding a potential default.

The Dow rallied 1 percent, the tech-heavy Nasdaq Composite climbed 1.1 percent and the S&P 500 added 0.8 percent.

European stocks rallied on Thursday as bond yields retreated and concerns about a full-blown energy crisis eased.

The pan European Stoxx 600 jumped 1.6 percent. The German DAX surged 1.9 percent, France's CAC 40 index gained 1.7 percent and the U.K.'s FTSE 100 advanced 1.2 percent.

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