The forecast for the Indian market is cautiously optimistic, although the upside may be limited by caution ahead of U.S. employment data later in the day.
Asian stocks are rising for a third consecutive session this morning, lifting the MSCI Asia Pacific index up by about 0.3%, taking the lead from U.S. markets where stocks surged higher overnight on the back of some encouraging economic reports. A slight weakening of the yen against the dollar also offered some support. However, futures on the Dow index are declining 11 points.
Closer home, foreign institutional investors (FIIs) bought shares worth Rs 82.31 crore on Thursday, while domestic institutional investors sold shares worth Rs. 118.28 crore, provisional data shows. On Wednesday, net purchases by FIIs totaled Rs. 526.80 crore, according to data released by market regulator SEBI.
On Wall Street, stocks saw steady upside in the second half of the session Thursday ahead of Friday's landmark jobs report, as upbeat data on pending home sales, weekly jobless claims and continued growth in August retail helped lift risk appetite. While the Dow gained about half a percent, the Nasdaq and the S&P 500 rose by around a percent each.
However, the Indian ADRs closed on a mixed note. Sterlite Industries, Reddy's Laboratories and Mahindra Satyam rose about 2% each, but MTNL declined 2.48% and Wipro eased marginally.
Crude oil prices moved higher on Thursday on reports of an explosion in an offshore oil rig in the Gulf of Mexico. Light, sweet crude for October delivery settled up $1.11 at $75.02 a barrel on the New York Mercantile Exchange after falling to a low of $73.11 earlier in the session.
The Indian rupee, meanwhile, ended 0.2 percent stronger at 46.71/72 against the dollar on Thursday after the dollar lost ground against major currencies and other Asian units.
The Indian stock market failed to hold its initial gains on Thursday despite a rally on Wall Street overnight and notable gains across Asia. The benchmark indexes pared gains after the European markets opened in the red ahead of interest rate decision from the European Central Bank and data on U.S. pending home sales. While the 30-share Sensex finished the range-bound session 32 points or 0.18% higher at 18,238, the 50-share Nifty rose by 14 points or 0.26% to 5,486.
The European Central Bank left its key interest rate unchanged at a record low of 1% for the sixteenth straight month and extended its unlimited liquidity boosting measures for banks until early next year as expected and raised the growth and inflation projections.
Speaking at the press conference that followed the announcement of the decision, ECB President Jean-Claude Trichet said price developments are expected to remain moderate over the policy-relevant medium-term horizon, benefiting from low domestic price pressures. The firm anchoring of inflation expectations remains of the essence, he asserted.
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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.