Sensex, Nifty Seen Higher On Firm Asian Cues

(RTTNews) - Indian shares look set to open a tad higher on Friday, helped by positive global cues and a rising trend in rupee amid fresh foreign fund inflows.

Sounding upbeat about India's economic prospects, global rating agency Fitch said India's GDP growth would slowly accelerate to 8 percent by fiscal year ending March 2019, driven by the gradual implementation of structural reforms, higher disposable income and improvement in economic activity.

Meanwhile, accelerating infrastructure investment, the government on Thursday approved an investment of over Rs 5,530 crore for the current fiscal to provide basic infrastructure in over 110 cities across six states.

India's benchmark index BSE Sensex jumped 485 points or 1.9 percent to reach 2016 high on Thursday and the Nifty index added 1.7 percent, as expectations of a good monsoon, stellar results posted by L&T and the government's first-ever policy for the capital goods sector, triggered heavy short-covering by speculators on the eve of F&O expiry. The rupee rose by 16 paise to close at 67.17 per dollar, extending gains for the second straight session.

Asian shares eked out modest gains in early trade this morning, although Chinese and Hong Kong shares fell slightly on data showing slowing growth in Chinese industrial profits. The yen turned weaker again as data showed core consumer prices fell for the second straight month in April and speculation intensified that Prime Minister Shinzo Abe will delay a national sales tax increase.

Oil futures dipped in Asian deals and the dollar index turned flat after modest losses overnight, as investors await a speech from Fed Chair Janet Yellen and the second estimate for first-quarter U.S. GDP later in the day. A declaration at the G7 meeting in Japan said that a UK exit from the EU would pose a serious threat to global growth.

U.S. stocks ended narrowly mixed on Thursday after a two-day rally, as crude prices retreated from the $50 a barrel level and Fed Governor Jerome Powell said a rate hike may come "fairly soon" . Economic data on jobless claims, pending home sales and durable goods orders were fairly positive.

European shares posted modest gains to end at their best levels in five weeks on Thursday after fluctuating between gains and losses in choppy trade. The German DAX and France's CAC 40 index both rose about 0.7 percent while the U.K.'s FTSE 100 closed marginally higher. The pan-European Stoxx Europe 600 index inched up 0.1 percent.