Sensex, Nifty Seen Higher At Open

(RTTNews) - Indian shares look set to open higher on Thursday, mirroring favorable cues from global markets as investors reacted positively to the Federal Reserve's policy outcome.

While overall sentiment is likely to remain positive, some consolidation is possible due to geopolitical tensions and tariff worries. Ukrainian President Volodymyr Zelensky has agreed to partial ceasefire with Russia, following an hour-long phone call with U.S. President Donald Trump.

Benchmark indexes Sensex and Nifty edged up slightly on Wednesday, with metal stocks pacing the gainers after the government recommended a temporary tax on certain steel imports.

The rupee appreciated by 12 paise to 86.44 per dollar, gaining for a sixth straight session and marking its longest winning streak since September 2024 on the back of exporter dollar sales and foreign inflows.

Foreign institutional investors resumed their selling and offloaded shares worth Rs 1,096.50 crore on a net basis Wednesday, while domestic institutional investors were net buyers of shares to the extent of Rs 2,140.76 crore, as per provisional data.

Asian stocks were mixed this morning, with mainland Chinese and Hong Kong markets slipping into the red after China's central bank kept its benchmark lending rates steady for the fifth consecutive month.

The dollar wobbled and gold scaled a new peak above $2,050 per ounce while oil prices surged after a U.S. government report allayed concerns about near-term demand destruction.

U.S. stocks ended higher overnight while Treasury yields slipped as the Fed held interest rates steady and signaled the possibility of two rate cuts by the end of the year, given increased uncertainty around the economic outlook.

The Fed also lowered its economic outlook for the year, marked up its inflation expectations and said it will start shrinking its balance sheet at a slower pace starting next month amid growing worries around tariffs.

The tech-heavy Nasdaq Composite surged 1.4 percent as an investor event reassured markets about demand for artificial intelligence computing. The S&P 500 rallied 1.1 percent and the Dow added 0.9 percent.

European stocks rose for a fourth straight session on Wednesday, with geopolitical tensions, the Fed's rate decision and Germany's debt reforms in focus.

The pan European STOXX 600 gained 0.2 percent. France's CAC 40 jumped 0.7 percent and the U.K.'s FTSE 100 finished marginally higher while the German DAX dipped 0.4 percent.