Indian shares may open higher as traders trim Fed hike bets

Indian equities were set for a firmer opening on Friday, according to Business Recorder, after four straight sessions of declines. The move followed a drop in bets on a Federal Reserve rate increase later this month, which lifted global stocks and pulled bond yields lower.

Fed Governor Christopher Waller said on Thursday that he favoured leaving rates unchanged at the next policy meeting if incoming inflation figures show pressures easing. CME FedWatch data showed the chance of a hike at the mid-September gathering falling to roughly 50% from about 63% in the previous session.

Domestic sentiment has been weighed by concerns over volatility linked to the new closing auction mechanism and heavy primary market issuance. The market regulator said it will review how derivatives settlement prices are determined after feedback on the cash segment's closing auction, while foreign investors offloaded shares worth 2.35 billion Indian rupees ($24.87 million) on Thursday, based on provisional data.