BENGALURU (Reuters) – India’s benchmark Nifty 50 index is set to open at a record high on Thursday, tracking the gains in global stocks after a market-pleasing U.S. inflation report boosted expectations of a U.S. interest rate cut.
The GIFT Nifty traded at 23,452 as of 8:07 a.m. IST, indicating that the Nifty 50 will open above its close of 23,322.95 on Wednesday.
The Nifty 50 has hit all-time highs twice in the last three sessions as the election results ensured policy continuity and the central bank raised its economic growth forecast.
U.S. consumer prices were unexpectedly unchanged in May, while core prices grew at their slowest annual pace in over three years, bolstering bets of a U.S. rate cut in September to 56.7% from 46.8% on Tuesday, according to CMEGroup’s FedWatch tool.
That was in contrast to comments from Federal Reserve Chair Jerome Powell, while acknowledging easing inflation, said inflation was still too high and that rate-cut expectations have been pushed out. The central bank held rates steady as expected.
Nonetheless, the U.S. S&P 500 and Nasdaq indexes rallied to record closing highs for the third straight day, and Asian markets also opened higher. [MKTS/GLOB]
Meanwhile, data also showed India’s retail inflation rate eased slightly in May, helped by a drop in fuel prices, although food inflation rose year-on-year. Economists expect the central bank to hold rates until October-December.
Stocks to watch:
** Vodafone Idea, whose board is to decide on a fresh fundraise.
** Whirlpool Of India and Hindustan Unilever, which entered into a joint marketing agreement.
($1 = 83.5270 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Savio D’Souza)
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