Sensex, Nifty Seen Higher At Open

(RTTNews) - Indian shares are seen opening higher on Friday as the prospect of deep rate cuts from central banks next year boosted global sentiment.

It is believed that the Fed's projections are more conservative, and the U.S. central bank could slash rates even further than forecast in 2024.

Energy stocks could be in focus today after oil prices jumped around 3 percent on Thursday, thanks to a weaker dollar and a bullish forecast from the International Energy Agency (IEA) on oil demand.

Benchmark indexes Sensex and Nifty jumped around 1.3 percent and 1.2 percent, respectively on Thursday while the rupee ended higher by 7 paise at 83.33 against the dollar amid hopes that the Fed's dovish stance coupled with a favorable macroeconomic picture will trigger large capital flows to India.

Asian markets were broadly higher this morning after the Dow Jones Industrial Average notched its second straight record high close.

Meanwhile, a slew of Chinese data painted a mixed picture of the economy.

Retail sales rose an annual 10.1 percent in November, while weakness in the country's property sector and private investment continued in the month.

The dollar traded at over four-month lows while gold was on track for a weekly gain on rate cut bets.

U.S. stocks eked out modest gains overnight to extend the previous session's strong rally, with strong retail sales data for November and hopes of deeper rate cuts next year underpinning sentiment.

Weekly jobless claims stood at 202,000 for the week ended 9 December, lower than the estimated 220,000.

The Dow inched up 0.4 percent to reach a new record closing high while the tech-heavy Nasdaq Composite rose 0.2 percent and the S&P 500 edged up 0.3 percent to tough their best closing levels in almost two years.

European stocks closed on a firm note Thursday as investors welcomed monetary policy announcements from the Federal Reserve, the Bank of England and the European Central Bank.

While the Fed hinted at three interest rate cuts next year, the ECB pledged to stay tight as long as necessary, and the BoE pushed back against rate cut bets.

The pan European STOXX 600 climbed 0.9 percent to close at a 22-month high.

The U.K.'s FTSE 100 rallied 1.3 percent and France's CAC 440 added 0.6 percent while the German DAX finished marginally lower.