BENGALURU: India’s benchmark index Nifty 50 will likely open higher on Thursday after hitting fresh record highs in the previous session, fuelled by a global rally over optimism that the US central bank would start cutting rates as soon as next March.

India’s GIFT Nifty was trading at 21,760 as of 7:45 a.m. IST, suggesting the NSE Nifty 50 is set to open above its Wednesday’s close of 21,654.75.

The NSE Nifty and BSE Sensex hit all-time highs on Wednesday, with the former notching record highs in 12 sessions of the 18 so far in December.

Analysts say the sentiment is positive and could remain so in the last few days of the week to end the year on a positive note.

The indexes have risen 7.5% each so far this month, helped by strong domestic macroeconomic data, a return of foreign inflows, and moderation in oil prices.

Indian stocks resume record-breaking rally on rate cut optimism

The monthly gains are also the most this year and the highest since July 2022.

US stocks overnight eked out gains, and were on course for monthly, quarterly, and annual gains.

Asian shares touched five-month highs on Thursday, supported by bets that the US central bank could cut rate cuts next year.