Sensex, Nifty Seen Up As Macro Data Brings Cheer

Indian shares look set to open a tad higher as investors react to positive inflation and industrial output data released post-market hours Thursday.

India’s consumer price inflation slowed more than expected in July mainly due to softening food prices, preliminary data from the statistics ministry showed.

The consumer price index rose 5.59 percent year-on-year following a 6.26 percent increase in June. Economists had forecast 5.78 percent inflation.

Industrial production logged a double-digit growth in June due the low base of comparison, separate data showed.

Industrial production grew 13.6 percent on a yearly basis in June, but much slower than the revised 28.6 percent expansion posted in May. Economists had forecast an annual increase of 13.5 percent.

Benchmark indexes Sensex and the Nifty rose about half a percent each on Thursday to reach fresh record highs amid the expiration of weekly derivative contracts. The rupee bounced back by 18 paise to close at 74.26 against the greenback.

Asian markets traded mixed this morning as China expanded its regulation tightening exercise to the real estate sectors and the latest COVID-19 outbreak in the country forced the partial shutdown of Ningbo-Zhoushan port.

The dollar held firm near a four-month high while benchmark U.S. Treasury 10-year yields hit a one-month high after a lukewarm 30-year auction.

Oil extended losses for a second day after the IEA warned that demand growth for crude and its products had slowed sharply.

U.S. stocks ended a lackluster session higher overnight as signs of an uptick in wholesale prices and a drop in jobless claims suggested the economy is well and truly on the recovery track.

The Dow edged up marginally and the S&P 500 gained 0.3 percent to scale new record highs, while the tech-heavy Nasdaq Composite index rose 0.4 percent.

European stocks eked out a ninth straight record high on Thursday amid continued optimism about earnings and economic recovery.

The pan European Stoxx 600 edged up 0.1 percent. The German DAX climbed 0.7 percent and France’s CAC 40 index added 0.4 percent while the U.K.’s FTSE 100 slipped 0.4 percent.

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