FX.co ★ Sensex, Nifty May Rise On Global Cues

Indian stock markets are likely to start off positively on Friday, taking their cues from solid global market performance. This optimistic outlook is fueled by subdued retail sales data raising hopes for an imminent rate reduction in the U.S.

Additionally, official data reveals a promising economic landscape, with India's trade deficit lowering to a nine-month low of $17.5 billion in January. This drop is due to a 3% year-on-year increase in exports.

Today's watchlist includes oil and gas stocks, due to recent government hikes on the windfall tax applied to petroleum crude and diesel. Axis Bank shares might also experience heightened activity, given the allegations of a Rs.5,100 crore scam lodged by former Rajya Sabha MP and BJP leader Subramanian Swamy in the Delhi High Court. The bank is accused of profiting excessively from share transactions with Max Life Insurance.

Benchmark indexes Sensex and Nifty both advanced approximately 0.3% on Thursday, marking the third consecutive session of gains. The rupee marginally fell, closing at 83.04 against the dollar.

Asian markets are faring well this morning, with Japan's Nikkei reaching a new 34-year high based on expectations that the Bank of Japan will continue with its highly accommodative monetary policy. The dollar is witnessing some selling pressure ahead of U.S. producer price inflation data to be released later in the day, while gold maintains its stability following a rise in the U.S. trading session overnight. Oil prices have plateaued near a three-month high amid signs of OPEC+ members holding to their supply cut commitments.

U.S. stocks experienced growth overnight as lackluster retail sales data resulted in a fall in Treasury yields and increased expectations of a Federal Reserve rate cut in the upcoming months. Despite an unexpected dip in industrial production in January, and fewer Americans seeking jobless claims last week, the S&P 500 rose 0.6% achieving a new record close. The Dow rallied by 0.9% and the tech-dominated Nasdaq Composite increased by 0.3%.

European stocks also performed well on Thursday due to robust corporate earnings results and speculations of an interest rate cut by the Bank of England in the next quarter to steer the country away from recession. Pan European STOXX 600 increased by 0.7%, Germany's DAX rose by 0.6%, France's CAC 40 went up by 0.9%, and the U.K.'s FTSE 100 rose marginally by 0.4%.