Indian shares are set to open slightly higher on Thursday, potentially continuing a four-session rally, as investors await the Reserve Bank of India’s (RBI) rate decision on Friday.
The Gift Nifty futures were trading at 24,527.5, as of 08:06 a.m. IST, indicating that the benchmark Nifty 50 will open above Wednesday’s close of 24,467.45. Both Nifty and BSE Sensex have been gaining for four straight sessions in their longest daily winning streak since September, led by financials.
“While the near-term outlook for markets is positive, there is a possibility of consolidation or minor dip in this session as the benchmarks are unable to see a decisive upside breakout,” said Nagaraj Shetti, senior research analyst at HDFC Securities.
Meanwhile, the RBI is expected to hold rates steady at its policy meeting on Friday due to elevated inflation, but its commentary will likely be pivotal for markets following a sharp growth slowdown in the September quarter.
Analysts have also pointed to the growing possibility of the domestic central bank lowering the cash reserve ratio (CRR) - cash reserves that banks must maintain with the RBI and can use to maintain liquidity in the economy - to 4% from 4.5%.
Indian shares open marginally higher
Asian stocks were mixed on the day after record peaks on Wall Street as a softer read on US services data boosted investor confidence in the Federal Reserve lowering interest rates.
Foreign institutional investors (FII) remained net buyers for the second straight session on Wednesday, while domestic institutional investors (DII) sold Indian shares for the second session in a row.
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