Indian shares were set to extend gains on Friday after a softer U.S. jobs report eased worries about a near-term interest rate increase by the Federal Reserve and improved risk appetite for emerging markets.
GIFT Nifty futures (GIFc1) were at 24,414, as of 7:43 a.m. IST, indicating the Nifty 50 NSE:NIFTY could open above Thursday's close of 24,175.7.
U.S. job growth slowed sharply in June and payroll gains for the prior two months were revised lower, pointing to a cooling labour market and prompting financial markets to dial back expectations for a near-term rate hike.
Lower U.S. interest rates encourage capital flows to emerging markets like India.
Foreign portfolio investors (FPIs) sold Indian shares worth 3.12 billion rupees ($32.71 million) on Thursday, as per provisional data. They have offloaded a record $29.46 billion worth of shares so far this year.
Domestic institutional investors remained buyers for an eighth straight session on Thursday.
The benchmark Nifty 50 and the Sensex BSE:SENSEX rose 1.3% in the last two sessions, mainly supported by a drop in crude oil prices.
STOCKS TO WATCH
** Non-bank lender Bajaj Finance NSE:BAJFINANCE says new loans booked during the June quarter rose 20% from last year, while assets under management grew 24%
** Punjab National Bank NSE:PNB reports 11.7% growth in domestic advances during April-June, while deposits rose 8.6%
** D-Mart operator Avenue Supermarts NSE:DMART posts 15.1% growth in standalone revenue for the first quarter
** Consumer goods maker Marico NSE:MARICO expects consolidated first-quarter revenue to grow in low-twenties percentage range, helped by robust performance across its core, digital and international businesses
($1 = 95.3900 Indian rupees)