Sensex, Nifty Set To Follow Global Peers Higher Ahead Of F&O Expiry

Indian shares are likely to open higher on Thursday, tracking firm cues from global markets and amid the impending F&O expiry.

Global risk sentiment improved on hopes for a more dovish Fed after the latest Fed meeting minutes revealed that Fed officials prefer slower rate hikes to evaluate the lagging effects on the economy amid the rising threat of a recession.

Asian markets traded mostly higher this morning, as China signaled more monetary stimulus and the Bank of Korea opted for a smaller rate hike.

Gold edged higher as the dollar slipped against rivals and bond yields fell after the release of FOMC minutes.

Oil edged up after having fallen more than 3 percent on Wednesday on news of a greater-than-expected build-up in U.S. gasoline inventories.

U.S. stocks rose overnight as the minutes of the Fed's early-November policy meeting showed a "substantial majority" of Fed officials supported slowing down the pace of interest rate hikes at upcoming meetings.

A few argued that it could be advantageous to wait to slow the pace of rises until the policy rate was "more clearly in restrictive territory" and that there were clearer signals inflationary pressures were receding significantly.

Economic data proved to be a mixed bag, with jobless claims increasing more than expected last week, while business activity contracted for a fifth month in November.

The Dow rose 0.3 percent to reach a seven-month closing high while the S&P 500 gained 0.6 percent and the tech-heavy Nasdaq Composite surged 1 percent.

European stocks ended firmly in positive territory on Wednesday despite PMI reports for the region pointing to a continued slowdown in business activity.

The pan European STOXX 600 advanced 0.6 percent. The German DAX finished marginally higher, France's CAC 40 index edged up 0.3 percent and the U.K.'s FTSE 100 inched up 0.2 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT