India (Common Wealth) _ Indian equities are poised to begin higher on Friday, matching Asian peers, with indexes nearing record highs after economic data from the United States suggested that the Federal Reserve may delay additional rate hikes.
As of 8:15 a.m. IST, India’s NSE stock futures traded on the Singapore Exchange SINc1 were up 0.24% at 18,804.50.
Wall Street equities closed higher on Thursday as statistics showed retail sales unexpectedly surged in May, reflecting resilience in the world’s largest economy’s consumer spending.
The weekly unemployment claims stayed constant, but were higher than expected, indicating a strong labor market that may postpone further rate hikes by the United States Federal Reserve.
The Fed kept interest rates constant on Wednesday, ahead of the jobs report, but hinted at additional hikes later this year.
European markets closed lower on Thursday after the European Central Bank boosted interest rates by 25 basis points. Asian shares opened higher on Friday, ahead of the Bank of Japan’s rate announcement.
On Thursday, Indian shares ended a three-day gaining streak, driven down by heavyweight financials and information technology firms as markets took a breather following the Fed’s hawkish pause on Wednesday.
Both benchmarks were less than 1% off their all-time highs. The Nifty Fifty.The NSEI and the Sensex.If BSESN can hold on to their gains on Friday, they will have extended them for the fourth week. On Thursday, the midcap index set a new all-time high, while the smallcap index set a new 52-week high.
Analysts said mood remained positive due to strong macroeconomic fundamentals and continuous purchasing by foreign institutional investors (FII), but they warned that consolidation would continue in the coming weeks.
According to preliminary NSE data, FIIs acquired 30.86 billion rupees ($377 million) worth of Indian equities on Thursday, while local investors sold 2.98 billion rupees.
