Global Markets Rally on Rising Bets for US Rate Cut

India's equity benchmarks are poised for a higher opening, mirroring global gains as softer US jobs data overshadows inflation concerns. The Gift Nifty futures suggest the Nifty 50 will open above 25,005.5, reflecting Optimism fueled by rising expectations of Federal Reserve rate cuts.

US jobless claims surged last week, signaling labor market weakness, while August retail inflation ROSE 0.4% month-on-month. The data has solidified bets for a Fed rate cut next week, with further reductions anticipated in October and December. Asian markets responded positively, with MSCI's Asia-Pacific ex-Japan index climbing 1%.

Lower US rates typically enhance the appeal of emerging markets like India for foreign portfolio investors (FPIs), as Treasury yields and the dollar weaken. Despite FPIs selling ₹3,472 crore ($393.2 million) in Indian shares on Thursday, domestic institutional investors continued their buying streak for a thirteenth session.

The Nifty 50 has gained 1.7% over the past seven sessions, marking its longest daily winning streak in over four months. Market sentiment remains buoyant as investors position for a dovish Fed pivot.