Indian stocks are expected to open marginally higher on Tuesday as sentiment improves following the release of data indicating that domestic retail inflation slowed to a more than two-year low in May, while investors await U.S. inflation data and the Federal Reserve’s rate decision.
As of 8:05 IST, NSE stock futures on the Singapore Exchange were up 0.27 percent to 18,749.50.
Monday’s Wall Street close was positive, bolstering risk appetite ahead of U.S. inflation data on Tuesday and the Fed’s policy decision on Wednesday. The likelihood of a rate pause was 80.4%. FEDWATCH
Concerns regarding global demand led to a decline in oil prices on Monday, but they have since recovered some ground.
In May, India’s annual inflation fell to its lowest level in more than two years, 4.25 percent, assisted by a further decline in food prices. Industrial output increased 4.2% year-over-year in April, exceeding the predicted 1.8% increase.
A decrease in inflation and an increase in production, according to economists, supported the central bank’s decision to maintain rates and the monetary policy stance.
On Monday, Indian stocks increased prior to the release of macroeconomic data. Both the Nifty 50 and Sensex were 2% below their respective all-time highs. Prior to significant central bank decisions by the Bank of Japan, the European Central Bank, and the Federal Reserve, analysts anticipated consolidation in the markets.
According to provisional NSE data, foreign institutional investors sold 6.27 billion rupees ($76 million) worth of Indian equities on a net basis on Monday, while domestic investors purchased 17.94 billion rupees worth of shares.
