Indian shares are set to open higher on Friday, as an outsized interest rate reduction by the U.S. Federal Reserve and the anticipation of a soft landing for the world's largest economy boosted risk appetite across global markets.

While the Fed states that the balance of risks is even and the economy is in good shape, the path ahead may be less certain. Adding to this is the uncertainty of the US elections, creating a melting pot of numerous variables,

Experts rule out a runaway rally, given the steep valuations across large swathes of the market, expecting large caps to outperform broader markets.