Sensex, Nifty Seen Up On Upbeat Data And Firm Global Cues

Indian shares are seen opening higher on Friday as data showed India’s retail consumer price inflation slowed slightly at the end of the year and industrial production rebounded in November underpinned by broad based growth across all sectors.

Consumer prices advanced 5.72 percent on a yearly basis in December, slower than the 5.88 percent increase seen in November. In the same period last year, inflation was 5.66 percent.

Industrial production advanced 7.1 percent on yearly basis, reversing a revised 4.2 percent fall in October. This was also much bigger than the 2.6 percent increase expected by economists.

On the earnings front, Infosys raised its revenue growth guidance in constant currency terms, while HCL Technologies trimmed its FY23 revenue guidance.

Global cues remain positive as soft U.S. inflation data eased pressure on the Federal Reserve to make further sharp interest rate rises.

Benchmark indexes Sensex and Nifty ended slightly lower on Thursday, while the rupee settled largely unchanged.

Asian markets followed Wall Street higher this morning as a weaker dollar and falling longer-dated U.S. Treasury yields boosted demand for riskier assets. Gold was on course for a fourth straight week of gains. Oil edged down slightly in Asian trade after six consecutive sessions of gains.

U.S. stocks closed higher overnight, and Treasury yields ticked down, as fresh data showed consumer price inflation increased at a slower rate in December, matching expectations from economists.

U.S. consumer inflation edged down by 0.1 percent in December after inching up by 0.1 percent in November. The annual rate of consumer price growth slowed to 6.5 percent from 7.1 percent in November, marking the smallest increase since October 2021.

The Dow rose 0.6 percent to reach its best closing level in over a month and the S&P 500 edged up 0.3 percent to extend gains for a third day while the tech-heavy Nasdaq Composite added 0.6 percent to extend gains for a fifth consecutive day.

European stocks closed at their highest level since April 2022 on Thursday in choppy trading. The pan-European STOXX 600 advanced 0.6 percent.

The German DAX and France’s CAC 40 both surged around 0.7 percent, while the U.K.’s FTSE 100 rallied 0.9 percent.