Indian shares set to open marginally higher
INDIA-STOCKS/:INDIA STOCKS-Indian shares set to open marginally higher
Dec 10 (Reuters) - Indian shares are set to open marginally higher on Tuesday, with analysts expecting cautious sentiment ahead of key domestic and U.S. inflation data due later in the week, while focus would be on commodity stocks on expectations of Chinese stimulus.
The Gift Nifty futures were trading at 24,708 as of 7:56 a.m. IST, indicating that the benchmark Nifty 50 will open above Monday's close of 24,619.
"Cautious sentiment prevails in the markets ahead of key economic data such as consumer price inflation (CPI) readings from India and U.S.," said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
The Nifty and BSE Sensex fell 0.25% each on Monday.
U.S. CPI data, due on Wednesday, will influence the Federal Reserve's rate trajectory and could affect foreign inflows into emerging markets such as India. The odds of a 25 basis point rate cut at the Fed's policy meeting on Dec. 18 is at 86%, according to CME FedWatch. India's CPI data, due on Thursday, likely slowed to 5.53% in November after breaching the Reserve Bank of India's 6% upper tolerance band in the previous month, a Reuters poll of economists showed.
CPI data will be a crucial factor influencing the RBI's rate cut timing, analysts said.
"Markets are likely to trade in a narrow range with a positive bias, with focus on commodity-linked stocks on expectations of stimulus measures from China," Khemka said. Other Asian markets rose, led by Chinese equities on Beijing's new promises of rate cuts and a boost to consumption. Wall Street equities closed overnight, dragged by technology stocks and as investors awaited the inflation report.
Foreign institutional investors bought Indian shares worth 7.24 billion rupees (about $85 million) on Monday, while domestic institutional investors sold stocks worth 16.48 billion rupees.
STOCKS TO WATCH ** Reliance Industries is in talks with banks for a loan of up to $3 billion to refinance debt due next year, according to a Bloomberg News report ** Tata Motors says it will hike prices of its cars by upto 3% from January ** Bharat Electronics secures orders worth 6.34 billion rupees ** Life Insurance Corp of India trims stake in drugmaker Lupin to 2.542% from 4.569%
($1 = 84.8340 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Varun H K)
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:10 Dec 2024, 08:05 AM IST
- Top Gainers
- Top Losers
- 52 Week High