Sensex, Nifty Seen Tad Higher As GDP Growth Jumps To 7.8% In Q1

(RTTNews) - Indian shares are seen opening a tad higher on Friday as investors react to mixed global cues and domestic macro data.

The Indian economy grew at a faster pace in the three months to June period, mainly led by the services sector, preliminary estimates from the National Statistical Office showed.

Gross domestic product grew 7.8 percent year-on-year in the April to June quarter, which was a tad faster than the 7.7 percent expansion economists had forecast. In the same quarter last year, growth was 13.1 percent.

Separate data from the commerce ministry revealed that India's core sector output posted 8 percent growth in July after an 8.3 percent increase in June.

India's fiscal deficit for the first four months of the financial year stood at 6.06 trillion Indian rupees ($73.24 billion), 33.9 percent of the estimate for the whole year.

Benchmark indexes Sensex and Nifty gave up early gains to end down about half a percent each on Thursday amid F&O expiry and ahead of Q1 GDP data released later in the day.

Asian markets were mixed this morning as major Chinese banks cut deposit rates ahead of widely anticipated mortgage-rate cuts.

A cautious undertone prevails as investors await U.S. employment data due later in the day for clues on the Fed's monetary policy outlook.

Oil prices were set for a weekly gain after Russia signaled that it would extend export curbs.

Gold inched higher and was on course for a second straight weekly gain.

U.S. stocks ended mixed overnight and Treasury yields fell amid growing bets that the Fed will leave interest rates unchanged at its September meeting.

Jobless claims fell slightly last week, and consumer spending accelerated in July while the Fed's preferred gauge of inflation stayed high in July but matched estimates, various reports showed.

The Dow dipped half a percent and the S&P 500 slid 0.2 percent. The tech-heavy Nasdaq Composite edged up 0.1 percent to extend gains for a fifth consecutive session but still suffered its worst monthly loss of 2023.

European stocks ended mostly lower on Thursday after cautious comments by a leading ECB hawk.

Eurozone inflation stagnated in August while German retail sales fell unexpectedly in July, sharpening the dilemma for policymakers.

The pan-European STOXX 600 eased 0.2 percent. The German DAX edged up 0.4 percent while France's CAC 40 shed 0.7 percent and the U.K.'s FTSE 100 dropped half a percent.