(Reuters) Indian shares are set to open higher on Friday, tracking a rise in global equities on easing U.S. yields and cooling crude prices, ahead of the Reserve Bank of India's monetary policy decision, where the bank is expected to stand pat on key rates.
India's GIFT Nifty was trading up 0.01% at 19,607, as of 7:59 a.m. IST, indicating that the Nifty 50 will open higher from Thursday's close of 19,545.75.
The RBI's rate decision will be announced at 10:00 a.m. IST.
A Reuters poll of 71 economists in late September showed that the RBI would keep its key repo rate unchanged at 6.50% on Friday.
"The markets are anticipating a pause, a status quo from the RBI. The commentary regarding recovery in the domestic economy and inflation trajectory will be particularly crucial, given the recent volatility in crude prices," said Narendra Solanki, head of fundamental research at Anand Rathi Investment Services.
The pause in rate hikes so far this fiscal year, after an increase of 250 basis points in fiscal 2023, has helped the benchmark Nifty 50 jump 12.59% since April and hit all-time highs.
Wall Street equities closed higher overnight as U.S. yields eased after hitting multi-year highs earlier in the week. Investors are awaiting U.S. jobs report due later in the day for cues into the rate trajectory. Asian equities edged higher.
Oil prices extended slide on Thursday on concerns over global demand. Fall in crude prices helps importers like India.
Foreign institutional investors (FIIs) extended their selling streak for the 12th consecutive session on Thursday, offloading shares worth 18.64 billion rupees ($224.02 million) on a net basis. Domestic institutional investors (DIIs) bought 5.21 billion rupees in shares.
Stocks to watch
** Adani Wilmar: Co says September quarter profitability remained under stress due to lower edible oil prices.
** Sun Pharma: Drug maker to buy 37.76% stake in Ezerx Health Tech for 286.9 million rupees.
** Lupin: Company gets tentative approval from U.S. FDA for Tolvaptan tablets.
** KPI Green Energy: Company gets new orders aggregating to 12.10 Mega Watt for solar power projects.
