Indian shares look set to open on a cautious note as investors await the Reserve Bank of India’s interest-rate decision and policy guidance for direction.
Most economists expect the central bank to cut its benchmark repurchase rate by a quarter point to 5.25 percent.
Meanwhile, Russian President Vladimir Putin will hold crucial summit talks with Prime Minister Narendra Modi in Delhi today, covering trade, defense, economic cooperation, and global security.
Global sentiment remains fragile despite easing concerns over tech valuations and hopes that the Federal Reserve will deliver a 25-basis point interest-rate cut next week in its last meeting of the year.
Benchmark indexes Sensex and Nifty ended modestly higher on Thursday to snap a four-session losing streak.
The rupee closed 22 paise stronger at 89.97 on likely intervention by RBI, after having hit a new low of 90.42 at open amid concerns stemming from a wider current account deficit, capital outflows and uncertainty over a crucial trade deal with the United States.
Foreign investors net sold shares worth Rs 1,944 on Thursday, while domestic institutional investors net bought shares to the extent of Rs 3,661 crore, according to provisional exchange data.
Asian markets were mostly lower this morning, with Japan leading losses ahead of key U.S. inflation data as well as the September income and spending report due later in the day.
Gold traded below $4,200 per ounce and the dollar index was set for a second weekly decline while oil prices were poised for a second consecutive weekly gain.
U.S. stocks ended narrowly mixed overnight as investors braced for next week’s interest-rate decision from the Federal Reserve.
Treasury yields moved higher after data showed first-time claims for U.S. unemployment benefits unexpectedly fell to a three-year low in the week ended November 29.
Consulting firm Challenger, Gray and Christmas said that U.S. job cuts bumped past the 1 million threshold for 2025 in November as corporate restructuring, artificial intelligence and tariffs helped pare job rolls.
The tech-heavy Nasdaq Composite edged up by 0.2 percent and the S&P 500 closed 0.1 percent higher to extend gains for a third day while the narrower Dow finished marginally lower.
European stocks closed higher on Thursday, with Ukraine peace talks and upcoming central bank meetings in focus.
The pan European Stoxx 600 gained half a percent, supported by a rebound for major banks and automakers.
The German DAX climbed 0.8 percent, France’s CAC 40 rose 0.4 percent and the U.K.’s FTSE 100 added 0.2 percent.
Market Analysis
Indian Shares Set For Muted Start; RBI Decision Eyed
2025-12-05 02:38:18
