India's GIFT Nifty was down 0.14% from its overnight close at 21,030.50 as of 8:25 a.m. IST, above the Nifty 50's Wednesday's record close of 20,937.70, indicating a positive open.
Wall Street equities extended losses for a third session as the rally faded after posting their best month in 2023 in November, while U.S. Treasury yields fell as data showed a lower-than-expected rise in private payrolls in November.
The slowdown in hiring indicates a cooling economy, adding to bets of a Fed rate cut by early 2024. The odds of a 25 basis-point rate cut in March 2024 rose to 54% from 20.3% a month ago, according to CME's FedWatch Tool.
Oil prices fell to a six-month low of $74.11 per barrel on Wednesday as high U.S. crude output and gasoline inventories added to concerns over global fuel demand. [O/R]
The fall in crude oil prices is a positive for importers of the commodity like India and its oil marketing companies.
The Nifty 50 has risen 5.77%, over the last seven sessions and is at record high levels. The index is the most overbought in over two years, boosted by favourable macroeconomic data and liquidity.
Analysts expect some consolidation around 21,000 levels, ahead of the Reserve Bank of India's monetary policy decision on Friday.
The RBI is expected to hold rates at 6.50% for a fifth consecutive meeting, according to a Reuters poll.
STOCKS TO WATCH:
** Paytm: Company to curtail low-value personal loans after central bank clampdown
** IDFC First Bank: Warburg Pincus-affiliate Cloverdell Investment plans to sell 1.3% in the lender through block deal, according to media reports
** TV18 Broadcast: Company to merge with Network18 Media and Investments in a $1.2 billion deal** Bharat Electronics: Company secures two defence equipment orders worth 39.15 billion rupees
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng)
