Sensex, Nifty To See Cautious Start With Earnings And Data In Focus

Indian shares may open on a cautious note Thursday as investors react to muted global cues, disappointing economic data and mixed earnings from Wipro and HCL Technologies.

India’s consumer price inflation accelerated more than expected in September to its highest level in five months, while industrial production declined unexpectedly in August to mark its first contraction in one-and-a-half years, separate data from the National Statistical Office showed.

Consumer price inflation rose to a five-month high of 7.41 percent in September from 7.00 percent in August. Economists had forecast the rate to increase to 7.30 percent. The inflation rate stands well above the RBI’s medium-term target of 4.0 percent.

Industrial production declined 0.8 percent year-over-year in August, reversing a 2.2 percent rise in July. Further, this was the first decrease since February 2021.

“India is facing a mixture of factors that may shake its sovereign credit metrics,” S&P Global Ratings warned in a report.

On the earnings front, IT major Wipro reported a mixed set of quarterly numbers while HCL Technologies raised its 2023 revenue growth target. Infosys and MindTree will be unveiling their financial results later today.

Benchmark indexes Sensex and Nifty jumped around 0.8 percent each on Wednesday after three consecutive sessions of losses. The rupee fell by 14 paise to close at 82.35 against the greenback.

Asian markets traded mostly lower this morning ahead of U.S. consumer price inflation data due later in the day.

The yen hit a fresh 24-year low versus the dollar and the British pound held ono its overnight gains, while oil struggled for direction after three sessions of losses on concerns over a worsening demand outlook.

U.S. stocks reversed course to end lower overnight, as producer prices rose more than expected in September and the latest Fed meeting minutes reiterated the central bank’s resolve in dampening inflation, with the summary of economic projections pointing to a terminal rate of around 4.6 percent.

The S&P 500 eased 0.3 percent to notch its sixth consecutive loss, while the Dow and the tech-heavy Nasdaq Composite both finished marginally lower.

European stock extended their losing streak for the sixth straight session on Wednesday amid concerns over slowing global growth, rising interest rates and escalating geopolitical tensions.

The pan European Stoxx 600 dropped half a percent. The German DAX shed 0.4 percent, France’s CAC 40 index slipped 0.3 percent and the U.K.’s FTSE 100 declined 0.9 percent.