Indian shares are expected to open quietly on Friday, reflecting subdued signals from global markets.
Hopes for a U.S. rate cut diminished after three Federal Reserve officials advocated maintaining higher borrowing costs until there is more significant evidence of easing inflation.
Telecom stocks could draw attention today following reports that the upcoming spectrum auction has garnered substantial interest from telecom operators.
Benchmark indices Sensex and Nifty each gained around 1 percent on Thursday, while the rupee depreciated slightly by four paise, settling at 83.50 against the dollar.
Asian markets traded mostly lower this morning; however, Chinese and Hong Kong stocks maintained modest gains as authorities intensified support measures for the property sector.
On the economic data front, China's industrial output exceeded expectations in April, though growth in April retail sales fell short of projections.
Oil and gold prices saw modest gains in Asian trading, while the dollar index was heading for a weekly loss.
U.S. stocks closed lower on Thursday, a day after all three major indices achieved record closing highs following milder-than-anticipated consumer price inflation data.
In economic releases, weekly jobless claims suggested some cooling in the job market, factory output remained unchanged in April, and separate reports indicated that overall housing starts rebounded in April after a significant decline.
The Dow reached an intraday high of 40,000 before closing marginally lower. The S&P 500 decreased by 0.2 percent, and the tech-heavy Nasdaq Composite declined by 0.3 percent.
European stocks fell for the first time in nine days on Thursday as investors contended with some disappointing earnings reports.
The pan-European STOXX 600 dipped by 0.2 percent. Germany's DAX fell by 0.7 percent, France's CAC 40 shed 0.6 percent, and the U.K.'s FTSE 100 closed slightly lower.