Sensex, Nifty To Open On Muted Note Despite Powell's Upbeat Comments

(RTTNews) - Indian shares are likely to open on a muted note Thursday despite Fed Chair Jerome Powel's upbeat comments on the world's largest economy and FIIs remaining net buyers of Indian equities for the second straight session.

The weekly Nifty options expiry and anxiety ahead of the RBI policy meeting tomorrow may prompt traders to book some profits after recent gains.

FIIs net bought shares worth Rs 1,797.60 crore on Wednesday, while DIIs net sold shares to the tune of Rs 900.62 crore, according to provisional data.

Powell said the U.S. economy is "in remarkably good shape," and that downside risks from the labor market had receded.

Benchmark indexes Sensex and Nifty ended slightly higher on Wednesday to extend gains for a fourth day running, with financials leading the surge.

The rupee closed at a record low of 84.74 per U.S. dollar due to a strong dollar index.

Asian markets traded mostly lower this morning amid geopolitical tensions, concerns about the Chinese economy, and political uncertainties in France and South Korea.

Gold dipped slightly while oil steadied after a steep decline ahead of an OPEC+ meeting.

U.S. stocks rose overnight to reach new record highs after ending mixed for two straight days.

The tech-heavy Nasdaq Composite climbed 1.3 percent, the Dow gained 0.7 percent and the S&P 500 edged up by 0.6 percent following upbeat results from Salesforce and Marvell Technology, and positive comments by Federal Reserve Chair Jerome Powell on the growth and inflation outlook.

Weaker-than-expected private sector employment and service sector activity data also contributed to optimism about the outlook for interest rates.

European stocks closed higher for a fifth consecutive session on Wednesday ahead of the no-confidence vote in France.

The pan European STOXX 600 advanced 0.4 percent. The German DAX rallied 1.1 percent and France's CAC 40 added 0.7 percent while the U.K.'s FTSE 100 dipped 0.3 percent.