Sensex, Nifty likely to open flat ahead of US jobs data

Pre-markets: Benchmark indexes are set to open little changed on Friday, as trers await a crucial US jobs report to gauge size and speed of Federal Reserve's interest rate cuts. GIFT Nifty GIFc1 was tring at 25,176 points as of 8:05 a.m. IST, indicating that NSE Nifty 50 .NSEI will open near its previous close of 25,145.1.

blue-chip index hit a record high at start of week but has lost 0.36 per cent since as investors remain jittery about health of US ecomy and due to lack of domestic cues.

"Indian equities have taken a pause and are tring at higher zones, with every dip being bought ahe of key US data and Fed's rate decision later in month," said Siddhartha Khemka, he of research of wealth manment at Motilal Oswal Financial Services.

Concerns over a slowdown in US labour market have re-emerged after data showed soft job openings overall and fewer job gains in private sector, raising expectations of an aggressive 50-basis-point rate cut when Fed meets on September 17-18.

US n-farm payroll report for August, due after Indian markets close, will give more clarity on health of labour market, which will guide odds of quantum of a rate cut.

A weak report will raise odds of a 50 bps cut, while a report showing a recovering labour market will bolster bets of a 25 bps cut. A US rate cut is to increase foreign fund inflows to emerging markets such as India.