INDIAN SHARES – Indian stocks set to rise as lower US inflation spurs global rally

INDIAN SHARES – Indian stocks set to rise as lower US inflation spurs global rally
INDIAN SHARES – Indian stocks set to rise as lower US inflation spurs global rally

Indian stocks are expected to open higher on Thursday, following a rally in global stocks after weaker-than-expected U.S. consumer inflation raised expectations of at least two interest rate cuts in 2024.

The Gift Nifty was trading at 22,386.50 at 8:19 am IST, indicating that the Nifty 50 will open above Wednesday’s close at 22,200.55.

Wall Street indexes posted closing records last night as U.S. consumer prices rose less than expected in April, suggesting inflation has resumed a downward trend.

Other Asian countries also rose, supported by inflation data, while U.S. Treasury yields and the dollar fell.

“The US inflation report should be music to the stock markets,” said Yogesh Kansal, co-founder of global investment platform Appreciate.

According to CMEGroup’s FedWatch tool, markets are now pricing in two rate cuts in 2024, with the first of 25 basis points expected in September.

The US rate-sensitive IT sector will be in focus as Indian IT companies derive a significant portion of their revenue from the US. The index closed down 0.02% on Wednesday, ending a two-day streak of gains.

The Nifty 50 has gained 0.66% since the start of the week, while the S&P BSE Sensex is up 0.44%, after falling 2% last week due to high volatility and selling supported foreigners.

ACTIONS TO MONITOR

** Adani Ports and Special Economic Zone – Norway’s central bank said its board had decided to exclude the Indian port operator from its government pension fund on ethical grounds.

**Jindal Stainless – India’s largest stainless steel maker by volume reported a decline in fourth-quarter profit due to lower steel prices.

** TVS Motor – The company launches its operations in Italy.

**Key Benefits – Mahindra & Mahindra, Hindustan Aeronautics Ltd, Biocon. ($1 = 83.4420 Indian rupees) (Reporting by Dimpal Gulwani in Bengaluru; Editing by Varun HK)

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