Sensex, Nifty Set To Stage Gap Up Opening On Strong Global Cues

IDBI Bank will be in focus after the Reserve Bank of India said that it will remove the bank from its Prompt Corrective Action framework

Sensex, Nifty Set To Stage Gap Up Opening On Strong Global Cues

The Indian equity benchmarks are set to open higher on the back of strong global cues and as indicated by the Nifty futures traded on the Singapore Exchange. The Nifty futures on Singapore Exchange rose closer to 15,400 while Nifty spot in Mumbai settled at 15,175 on Wednesday. Meanwhile, gauge of global stock markets climbed for a third straight session on Thursday to hit its highest level in two weeks, as a dip in government bond yields helped curb inflation concerns and give a boost to equities.

Euro zone bond yields fell after the European Central Bank said it was ready to accelerate money-printing to keep a lid on euro zone borrowing costs, using its 1.85 trillion euro Pandemic Emergency Purchase Program (PEPP) more generously over the coming months to stop any unwarranted rise in debt financing costs.

Asian shares pushed higher on Friday after U.S. President Joe Biden signed a $1.9 trillion stimulus bill into law, and as a retreat in bond yields overnight eased global concerns about rising inflation.

President Biden signed the stimulus legislation ahead of a televised address in which he pledged aggressive action to speed vaccinations and move the country closer to normality by July 4.

Back home, IDBI Bank will be in focus after the Reserve Bank of India said that it will remove the bank from its Prompt Corrective Action framework following improvement in its asset quality.