Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 29 points at the opening bell.
RBI policy meeting outcome:
The Reserve Bank of India's meeting of the Monetary Policy Committee (MPC) began on 7 October 2020 and ends today, 9 October 2020. The government on Monday has named Shashanka Bhide, Ashima Goyal and Jayanth Varma as its nominees on the central bank's monetary policy committee (MPC). The new members have been appointed for a four-year term.
The Reserve Bank of India was forced to delay the bi-monthly committee meeting set to take place from 29 September to 1 October, as it required at least four MPC members to proceed and the Indian government had failed to name replacements for three previous appointees whose tenure ended in September.
Overseas, Asian stocks are trading higher on revived hopes for a U.S. stimulus deal. Stocks in mainland China surged as they returned to trade on Friday from holidays. Markets in South Korea and Taiwan are closed on Friday for holidays.
A private survey showed services sector activity in China expanding in September. The Caixin/Markit services Purchasing Managers' Index for September came in at 54.8.
In US, stocks ended higher on Thursday as comments by U.S. President Donald Trump fueled hopes of fresh fiscal support, while data underscored the view that the labor market recovery was struggling to gain momentum.
Investor focussed on ongoing developments regarding potential new fiscal stimulus stateside. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke on Thursday about a broad coronavirus stimulus plan, after U.S. President Donald Trump pulled out of talks earlier in the week and called for stand-alone bills.
Initial claims for state unemployment benefits totaled a seasonally adjusted 840,000 for the week ended October 3, compared with an upwardly revised 849,000 in the prior week, the Labor Department said on Thursday.
Back home, benchmark indices advanced for the sixth trading session on Thursday amid positive global cues. Firmness in IT and banks shares supported the upmove. The barometer index, the S&P BSE Sensex, jumped 303.72 points or 0.76% at 40,182.67. The Nifty 50 index rallied 95.75 points or 0.82% at 11,834.60.
Foreign portfolio investors (FPIs) bought shares worth Rs 978.37 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 19.85 crore in the Indian equity market on 8 October, provisional data showed.