Sensex, Nifty Seen Opening Up As US Inflation Eases

Indian shares may open a tad higher on Thursday after data showed U.S. inflation slowed slightly more than expected in April.

Domestic earnings prove to be a mixed bag, with L&T’s Q4 net profit missing Street estimates while Godrej Consumer Products reported decent earnings growth and Dr Reddy’s Laboratories saw quarterly profit climbing nine-fold.

Adani Group stocks could be in focus today after reports that Adani Ports would prepay USD 130 million of debt ahead of schedule.

Benchmark indexes Sensex and Nifty recovered from an early slide to end modestly higher on Wednesday. The rupee gained 6 paise to close at 82 against the dollar.

Asian markets traded mixed this morning as data showed China’s consumer price inflation eased further in April and producer prices remained in deflation.

Gold and oil prices were slightly higher as the dollar sank for a second day against the yen after a drop in Treasury yields.

U.S. stocks ended mixed overnight as data showed consumer inflation fell below 5 percent for the first time in two years. So-called core inflation also eased, giving the Federal Reserve room to pause interest-rate increases soon.

The S&P 500 rose half a percent and the tech-heavy Nasdaq Composite rallied 1 percent while the Dow slid 0.1 percent as regional banks extended declines on concerns about the health of the banking sector.

European stocks ended Wednesday’s session broadly lower after leaders in Washington failed to make progress on a debt ceiling deal.

The pan European STOXX 600 gave up 0.4 percent. The German DAX slipped 0.4 percent, France’s CAC 40 shed half a percent and the U.K.’s FTSE 100 eased 0.3 percent.