Sensex, Nifty Set For Cautious Start

(RTTNews) - Indian shares look set to open on a tepid note on Friday despite firm cues from global markets on continued optimism around artificial intelligence.

Investors may weigh the impact of potential tighter sanctions on Russian crude after the Group of Seven (G7) finance ministers on Thursday pledged to step up coordinated economic pressure on Russia over its war in Ukraine, vowing new sanctions and trade measures targeting Moscow and those helping it circumvent restrictions.

Indian stock markets were closed on Thursday on the occasion of Dussehra and Gandhi Jayanti.

Benchmark indexes Sensex and Nifty jumped around 0.9 percent each on Wednesday to snap an eight-day losing streak after the RBI held the repo rate unchanged at 5.5 percent, lowered its inflation forecast and raised growth projections.

Investor sentiment was also underpinned by a weakening dollar and falling oil prices in international markets.

The rupee appreciated by 10 paise to close at 88.69 against the dollar as the RBI unveiled fresh steps to enhance international acceptance of the rupee.

Foreign institutional investors (FIIs) were net sellers of shares to the tune of Rs 1,605 crore on Wednesday, while domestic institutional investors net bought shares to the extent of Rs 2,916 crore, according to provisional exchange data.

Asian stocks were mostly higher in thin trade, with mainland China and South Korean markets closed for holidays.

Ahead of U.S. President Trump's meeting with Office and Management Budget Director Russell Vought, White House spokesperson Karoline Leavitt said thousands are likely to lose their jobs.

Separately, U.S. Treasury Secretary Scott Bessent said he expects coming talks with China to yield a "big breakthrough" in trade relations.

Gold was little changed in Asian trade and the dollar rebounded while oil was on track for its biggest weekly decline since late June ahead of an OPEC+ meeting over the weekend, where oil producers may agree to raise output in November, at a similar rate to the increase agreed for October, exacerbating concerns around oversupply.

Traders are also considering the prospect of an end of the war in Gaza, which could diminish potential risks to oil supply from the region.

U.S. stocks rose for a fifth straight session overnight, with all three major averages posting new records, as a wave of good news from the AI sector offset worries about the U.S. government shutdown, which is expected to drag on at least until the end of the week.

The tech-heavy Nasdaq Composite rose 0.4 percent as OpenAI completed a deal to help employees sell shares in the company at a $500 billion valuation. The Dow edged up by 0.2 percent and the S&P 500 finished marginally higher.

European stocks closed at a record high for a second session on Thursday as investors ramped up wagers on Federal Reserve interest-rate cuts.

The pan European Stoxx 600 gained half a percent. The German DAX rallied 1.3 percent and France's CAC 40 climbed 1.1 percent while the U.K.'s FTSE 100 dipped 0.2 percent.