Indian shares are anticipated to open slightly lower on Friday, reflecting subdued signals from other Asian markets.
Investors are hopeful for a favorable union budget, anticipated in the third week of July.
Market activity is expected to focus on the broader market following the recent outperformance of mid-cap and small-cap stocks.
Benchmark indices, Sensex and Nifty, posted modest gains on Thursday, marking the third consecutive session of growth, whereas the rupee weakened by 7 paise to settle at 83.55 against the dollar.
Asian stocks mostly declined this morning ahead of the Bank of Japan policy decision. The dollar showed some easing, gold prices edged up slightly, and oil prices dipped after four straight days of gains.
In the U.S., stocks largely closed higher overnight. May's producer price data indicated easing inflationary pressures.
The S&P 500 increased by 0.2 percent, achieving its fourth consecutive record close, while the tech-heavy Nasdaq Composite rose by 0.3 percent to a new record close. Meanwhile, the Dow Jones Industrial Average declined by 0.2 percent.
Data indicated that the annual producer price growth rate slowed to 2.2 percent in May from a revised 2.3 percent in April.
Additionally, separate data revealed an increase in new unemployment benefit claims in the U.S., reaching a 10-month high last week.
European stocks fell on Thursday as Eurozone industrial production unexpectedly decreased in April, and investors weighed the implications of rising political risks in France.
The pan-European STOXX 600 dropped by 1.3 percent. Germany's DAX and France's CAC 40 both fell by 2 percent, while the U.K.'s FTSE 100 declined by 0.6 percent.
