BENGALURU: Indian shares are set to open higher on Thursday, after minutes of the Federal Reserve policy meeting signalled that the US central bank is strongly leaning towards a rate cut next month.

The GIFT Nifty was trading at 24,880, as of 07:42 a.m. IST, indicating that the NSE Nifty 50 will open above its close of 24,770.2 on Wednesday.

Other Asian markets opened higher, with the MSCI Asia ex-Japan index rising 0.2%.

Wall Street equities closed marginally higher overnight, after minutes of the Fed policy meeting indicated the likelihood of a September rate cut.

Investors now await Fed Chair Jerome Powell’s address on Friday for confirmation that the US central bank is about to start loosening credit conditions from September.

India’s benchmark indexes Nifty 50 and S&P BSE Sensex witnessed a five-session gaining streak, rising about 2.5% each.

Analysts expect domestic equities to remain buoyant, but see limited potential for significant upside due to elevated valuations.

Indian shares log meagre gains led by consumer stocks; financials weigh

Foreign institutional investors remained sellers for a third session in a row on Wednesday, offloading shares worth 8 billion rupees ($95.34 million) on a net basis.

Domestic institutional investors, on the other hand, remained net buyers for the 13th straight session.